Nestle India: Nestle India Q3: net profit up 37% year-on-year to Rs 908 crore; company announces stock split in the ratio of 1:10
NEW DELHI: Nestle India’s net profit increased by 37% year-on-year to Rs 908 crore in the July-September quarter. Total sales grew by 9.4% y-o-y to cross the Rs 5,000 crore mark in Q3, the first ever for the company during a quarter.
“Consumer trends and increasing proclivity towards adoption of brands in small towns and large villages has propelled the growth of the company…..we crossed Rs 5,000 crore turnover, which has been our first in any quarter in the history of the company and a landmark for us,” said Suresh Narayanan, chairman and managing director at Nestle India. Total sales during the quarter stood at Rs 5,009.5 crore.
The company’s board also announced a stock split in the ratio of 1:10. This means that one share having face value of Rs 10 would be split into 10 shares having face value of Re 1 each. This, the FMCG major, said has been done to enhance the liquidity of the company’s equity shares and to encourage participation of retail investors by making equity shares of the company more affordable.
The board also declared second interim dividend for 2023 of Rs 140 per equity share amounting to Rs 1,349.8 crore which will be paid on and from November 16. The stock price of Nestle India ended at Rs24122 apiece on the BSE on Thursday, up 3.66%.
Within the firm’s basket of products, brands like Nescafe, Milkmaid and KitKat delivered robust growth. “Nescafe continued to cement its leadership position in the category with highest ever market share and strong household penetration gains,” the company said.
Talking about the commodity outlook, the firm said that coffee continues to be volatile because of global supply deficit while the upcoming winter weather may impact production of wheat. “Uneven rain and rain deficit is expected to impact production of maize, sugar, oilseeds and spices that may have an adverse impact on pricing,” the company said.
“Consumer trends and increasing proclivity towards adoption of brands in small towns and large villages has propelled the growth of the company…..we crossed Rs 5,000 crore turnover, which has been our first in any quarter in the history of the company and a landmark for us,” said Suresh Narayanan, chairman and managing director at Nestle India. Total sales during the quarter stood at Rs 5,009.5 crore.
The company’s board also announced a stock split in the ratio of 1:10. This means that one share having face value of Rs 10 would be split into 10 shares having face value of Re 1 each. This, the FMCG major, said has been done to enhance the liquidity of the company’s equity shares and to encourage participation of retail investors by making equity shares of the company more affordable.
The board also declared second interim dividend for 2023 of Rs 140 per equity share amounting to Rs 1,349.8 crore which will be paid on and from November 16. The stock price of Nestle India ended at Rs24122 apiece on the BSE on Thursday, up 3.66%.
Within the firm’s basket of products, brands like Nescafe, Milkmaid and KitKat delivered robust growth. “Nescafe continued to cement its leadership position in the category with highest ever market share and strong household penetration gains,” the company said.
Talking about the commodity outlook, the firm said that coffee continues to be volatile because of global supply deficit while the upcoming winter weather may impact production of wheat. “Uneven rain and rain deficit is expected to impact production of maize, sugar, oilseeds and spices that may have an adverse impact on pricing,” the company said.
