Nestle India Q4 Results: Nestle India on Wednesday reported a net profit of ₹655.61 crore for the quarter ended December 2023, registering a growth of 4.4% as compared to ₹628.06 crore in the same quarter last year.
The company operates on a January-December fiscal year schedule. Going forward, subject to approvals, the company’s financial year will commence from April 1 to March 31 instead of January 1 through December 31.
The company’s current fiscal year will be extended until March 31, 2024, which will span a period of 15 months from January 1, 2023, to March 31, 2024. The company’s subsequent fiscal years will start on April 1st and end on March 31st of that year.
The company’s revenue in Q4CY24 grew 8% to ₹4,600.42 crore from ₹4256.79 crore, year-on-year (YoY). In an exchange filing, the company said that strong growth momentum in e-commerce and out-of-home channels drove an 8.9% increase in domestic sales, which was supported by price and mix growth.
However, on a sequential basis, net profit slumped 27.8% from ₹908.08 crore in Q3CY24, and the FMCG major’s revenue from operations was down 8.7% from ₹5036.82 crore.
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The FMCG major surpassed the ₹19,000 crore milestone in 2023, according to the company, which reported a total sales growth of over 13.3%.
The company recorded a one-time loss of ₹107.3 Crore due to a change in the cost of maintaining the defined pension benefit.
Also Read: Nestle Q4: Company enters slump sale agreement with Purina PetCare for Nestle Business Services
Nestlé India’s steady development trajectory may be attributed to the efforts of all major brands and product groups. The business stated that the Beverages product category was the main driver of growth this quarter because to the high demand for NESCAFÉ CLASSIC and NESCAFÉ SUNRISE.
NESCAFÉ increased its market share significantly, while the FMCG majors drinks industry saw double-digit growth. Double-digit increase was reported in the Milk and Nutrition product area. Cooking aids and prepared dishes both saw respectable growth this quarter.
By concentrating on pertinent technologies, promising geographies, and strong penetration in developing channels through the introduction of new kiosks in strategic places, the company’s out-of-home business continues to expand quickly this quarter. This quarter, 7% of domestic sales came from e-commerce, which saw rapid growth.
Also Read: Nestle India share price Today Live Updates : Nestle India’s Stock Soars on Positive Trading Day
Nestle India dividend
In a regulatory filing, Nestle India said that its board of directors has approved the declaration of a third interim dividend of ₹7 per equity share of the face value of Re 1 each for the Financial Year 2023-24.
The company has also fixed the Record Date for the dividend as February 15.
“Third Interim Dividend for the Financial Year 2023-24 will be paid on and from 5th March 2024 to those members whose names appear in the Register of Members of the Company and as beneficial owners in the Depositories, as on the Record Date fixed for the purpose i.e., 15th February 2024.
Also Read: Nestle results today: Should you Buy, Sell or Hold the stock?
Nestle’s NBS Division Slump Sale
Nestle India also announced that its board has approved the slump sale of its Nestlé Business Services (NBS) Division to Purina PetCare India, a 100% subsidiary of Nestlé S.A., for an aggregate consideration of ₹79.8 crore.
“The said consideration is at an arm’s length basis and would be adjusted for net working capital transferred by the Company as on 30th June 2024. The transaction will be effective from 1st July 2024, subject to customary closing conditions,” Nestle India said.
At 13:43 IST, Nestle India share price was trading at ₹2,496 apiece, up 1.55% on BSE.
Also Read: Nestle India Q4 Results: Board declares dividend of ₹7 per share; Record date fixed on February 15
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