Nestle India Q1 results: Revenue, Profit, Margin, Dividend and more
Last updated: 20 Apr, 2021 | 01:06 pm
- Profit beats estimates: Nestle India has reported a 14.6% on-year rise in net profit to Rs 483 crore in Jan-Mar 21 period, beating street estimates. Analysts had earlier estimated a net profit of about Rs 590 crore. Double-digit volume growth and better-than-expected operating performance aided the bottomline. Profit in the corresponding period last year stood at Rs 525.43 crore.
- Revenue rises: Revenue rose 8.6% on-year to Rs 3,610.82 crore, against Rs 3590 crore estimated by analysts. The revenue growth was mainly driven by domestic sales that increased 10.2% to Rs 3,442.03 crore, even as the company’s exports declined 12.9% to Rs 158.17 crore in the period, due to lower exports to affiliates amid the pandemic. Demand in the Out of Home channel further improved in the quarter but continues to be impacted by COVID.
- Margins expand: Nestle’s EBITDA margin rose 170 bps to 25.8% in Q1CY21, as compared to 24.1% in the previous year.
- Key brands post double-digit growth: Nearly two thirds of Nestle India’s key brands like MAGGI Noodles, KITKAT, Maggie Sauces, MILKMAID and NESCAFÉ Classic posted double digit growth in the quarter. This was backed by a step up in marketing spends, especially in the last quarter. E-commerce continued to grow, contributing 3.7% of domestic sales. E‐Commerce channel grew by 66% in the quarter.
- Dividend: Nestle India has announced an interim dividend of Rs 25 for the quarter. This will be paid on and from 19th May 2021 along with the Final Dividend for the year 2020, as approved by the shareholders at the 62nd Annual General Meeting.
While the pandemic has hurt businesses across sectors, FMCG focussed businesses such as have shown resilience. Nestle India has delivered a healthy set of numbers for Jan-Mar 21 period, backed by double digit growth in the volumes of key brands. Predictably, in-home packaged food consumption has spiked as consumers spent more time at home during the pandemic. However, sharp increases in raw material prices and declining exports remain key concerns. Packaged food companies such as Nestle India are expected to perform far better than consumer firms whose products are somewhat discretionary (even within essentials) in nature.