Nestle Q2 net up 15 per cent
Net sales for the quarter stood at Rs 1,986.6 crore, an increase of 12.7% over the same quarter last year.
By Ratna Bhushan, ET Bureau | Updated:
NEW DELHI: Packaged foods firm Nestle India said it will step up its distribution and manufacturing this fiscal to counter a challenging economic environment, while announcing financial results for the April-June ‘12 quarter. The maker of Maggi instant noodles and KitKat chocolates said its net profit for the quarter went up 15% over the year-ago quarter, at Rs 245.9 crore.
Nestle CMD Antonio Helio Waszyk said in a statement: “We remain cautious. As expected, the year is proving to be a very challenging one – with inflation, uncertain monsoon and economic volatility.” He said besides accelerating focus on expanding its distribution footprint and capacity expansion, the company would increase efforts to reduce waste, brand building and product innovation.”
Net sales for the quarter stood at Rs 1,986.6 crore, an increase of 12.7% over the same quarter last year. The company said net domestic sales went up 13.7% on account of higher net realisation and volume growth. It added that the Rupee depreciation favourably impacted total exports growth by 13.1%.
It said the cost of materials for products sold as a percentage of net sales decreased, largely due to higher realisations and product portfolio/channel mix, which was partially offset by higher input costs.
Employee cost increased because of an increase in headcount to support capacities for business expansion and the company’s remuneration strategy. Depreciation in its books increased because of significant expansions in production capacities made over the past year.
The company said that during the quarter, it drew US$ 35 million from Swiss parent Nestle SA for a period of five years, under the ECB approval from Reserve Bank of India. The total amount outstanding as on 30 June, ‘12 was US $192 million.
The Nestle board declared an interim dividend of Rs 18 per equity share, amounting to Rs 173.6 crore.
Nestle CMD Antonio Helio Waszyk said in a statement: “We remain cautious. As expected, the year is proving to be a very challenging one – with inflation, uncertain monsoon and economic volatility.” He said besides accelerating focus on expanding its distribution footprint and capacity expansion, the company would increase efforts to reduce waste, brand building and product innovation.”
Net sales for the quarter stood at Rs 1,986.6 crore, an increase of 12.7% over the same quarter last year. The company said net domestic sales went up 13.7% on account of higher net realisation and volume growth. It added that the Rupee depreciation favourably impacted total exports growth by 13.1%.
It said the cost of materials for products sold as a percentage of net sales decreased, largely due to higher realisations and product portfolio/channel mix, which was partially offset by higher input costs.
Employee cost increased because of an increase in headcount to support capacities for business expansion and the company’s remuneration strategy. Depreciation in its books increased because of significant expansions in production capacities made over the past year.
The company said that during the quarter, it drew US$ 35 million from Swiss parent Nestle SA for a period of five years, under the ECB approval from Reserve Bank of India. The total amount outstanding as on 30 June, ‘12 was US $192 million.
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The Nestle board declared an interim dividend of Rs 18 per equity share, amounting to Rs 173.6 crore.
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