Nestle Q1 Results: Profit jumps 25%, Rs 27 per share dividend declared

Consumer goods major Nestle reported its results for the Jan - Mar ‘23 period. Both revenue and net profits surpassed the estimates of the experts.

While revenues increased by 21.3% from the previous year to Rs 4,808 crores, net profits rose by 24.7% yearly to Rs 737 crores. The estimates for revenue and net profits were Rs 4,424 crores and Rs 588 crores, respectively.

Meanwhile, the Nestle share price has had a decent run in recent times. Notably, the Nestle share price has gained almost 6% in 2023 so far while over the past year it has increased by more than 12%. In the same period, the Nifty Consumer Goods index has increased by 6.5% in 2023 so far while it has gained 24% in the past year.

So, what was the Nestle revenue mix? What drove Nestle profits? What was Nestle dividend? Let’s try and decode!

Nestle revenues: Nestle’s revenues for the Jan - Mar ‘23 period came in at Rs 4,808 crores, up 21.3% from the previous year. The rise in revenues was driven by the robust increase witnessed in both domestic and international sales.

Domestic sales at the end of the March quarter stood at Rs 4,613 crores (96% of total revenues). This denotes a growth of 21.2% from the previous year. Further, international sales grew by 24.8% yearly to Rs 196 crores (4% of total revenues).

Nestle Profits: For the Jan - Mar ‘23 period, Nestle reported a net profit of Rs 737 crores. This denotes a yearly rise of 24.7% from the previous year.

The management highlighted that the net profit growth was primarily driven by the rise witnessed in the confectionery (led by Kitkat and Munch), beverages (led by Nescafe) and milk products (led by Milkmaid).

Nestle Dividend: Nestle declared an interim dividend of Rs 27 per share. The dividend will be paid from 8th May, 2023.

Nestle Earnings: Other Highlights

• The management remarked that it has witnessed growth across all its business channels with significant growth seen in e-commerce.
   
• The management also highlighted that it is observing a decline in the prices of its key raw materials such as edible oils, wheat and packaging materials which can aid its margins.

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