Nestle Q3 net up 2 pc at Rs 267 crore

NEW DELHI: World's largest food company Nestle's Indian arm on Monday said it will continue to invest in profitable growth in a challenging year after reporting just 2.3% year-on-year increase in its net profit for the quarter ended September at Rs 267.31 crore.

"The year is proving to be challenging," Nestle India chairman & managing director Antonio Helio Waszyk said in a statement. He said portfolio rationalisation, channel prioritisation and innovations have started to yield results but corrective actions on demand generation in specific categories will take some time.

The maker of Maggi noodles and KitKat chocolates reported 7.6% growth in its sales for the third quarter at Rs 2,115.59 crore, which the company attributed to net realisations and product mix. It said exports were up by a tenth to Rs 94.94 crore. "Depreciation in rupee has favourably impacted total exports," it said.

Nestle has been impacted negatively by escalating costs of commodities including sugar, milk and coco over the past year. Nestle India's scrip ended lower by about 1% at close at Rs 4,820 on the BSE on Monday. The results were announced after market hours.