Last updated: 17 Feb, 2021 | 09:04 am
Nestle India shares declined by nearly 3% on Wednesday, after the company’s Oct- Dec 20 earnings missed estimates.
Highlights from quarterly results
Profit below estimates: Nestle India has reported a 2% on-year rise in net profit to Rs 483 crore in Oct-Dec 20 period, missing street estimates. Analysts had earlier estimated a net profit of about Rs 563 crore. The bottomline was impacted by a rise in total expenses. Total expenses rose 8.3% on-year to Rs 2,793 crore.
Revenue rises: Revenue rose 9% on-year to Rs 3,432.6 crore, against Rs 3,500 crore estimated by analysts. The revenue growth was mainly driven by domestic sales that increased 10.1% to Rs 3,260.7 crore, even as the company’s exports declined 7.7% to Rs 156.82 crore in the period, due to lower coffee exports. Demand in the Out of Home channel was impacted throughout the year due to COVID.
Key brands post double-digit growth: Nearly two thirds of Nestle India’s key brands like MAGGI Noodles, KITKAT and NESCAFÉ Classic posted double digit growth last year. 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. The company said that the demand in Out of Home channels has continued to improve, sequentially over quarters and it remains confident of its recovery.
Dividend: Nestle India has announced a final dividend of Rs 65 for the calendar year Jan-Dec 20. The total dividend for 2020 aggregates to INR 200 per share, which includes one interim dividend of INR 135 per share paid on 20 November 2020.
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