Nestle India announced that Martin Roemkens, Whole-time Director of the Company designated as “Executive Director - Technical” shall betaking up a new assignment in another Nestlé Affiliate with effect from 1 November 2020 and shall therefore cease to be Whole-time Director from that Date.

Matthias Lohner, currently Operations Manager, Nescafé Dolce Gusto, Global Business Unit based in Switzerland, is proposed to be appointed in place of Martin Roemkens, subject to necessary approvals.

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Nestle India Ltd is down for a fifth straight session today. The stock is quoting at Rs 16484.8, down 0.23% on the day as on 13:24 IST on the NSE. The benchmark NIFTY is down around 1.25% on the day, quoting at 10934.6. The Sensex is at 37055.59, down 1.47%.Nestle India Ltd has lost around 1.89% in last one month.Meanwhile, Nifty FMCG index of which Nestle India Ltd is a constituent, has increased around 0.54% in last one month and is currently quoting at 30872.45, down 0.19% on the day. The volume in the stock stood at 67496 shares today, compared to the daily average of 1.65 lakh shares in last one month.

The benchmark August futures contract for the stock is quoting at Rs 16495.8, down 0.69% on the day. Nestle India Ltd jumped 40.74% in last one year as compared to a 0.66% rally in NIFTY and a 7.07% spurt in the Nifty FMCG index.

The PE of the stock is 76.6 based on TTM earnings ending June 20.

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Net profit of Nestle India rose 11.15% to Rs 486.60 crore in the quarter ended June 2020 as against Rs 437.79 crore during the previous quarter ended June 2019. Sales rose 1.97% to Rs 3041.45 crore in the quarter ended June 2020 as against Rs 2982.83 crore during the previous quarter ended June 2019.

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Revenue from operations stood at Rs 3050.48 crore in Q2 June 2020, rising 1.66% from Rs 3000.85 crore in the same period last year.

Nestle said its total sales grew at 2% while domestic sales grew at 2.6%. The company's export sales declined by 9.3%. Sales were adversely impacted due to the COVID-19 induced lockdown leading to production disruption across factories. Demand in out of home channel was also severely reduced, the company added.

Profit before tax declined 1% to Rs 652.27 crore in Q2 June 2020 over Q2 June 2019. Total tax expense declined 25% year on year to Rs 165.67 crore in Q2 June 2020.

On an average, the factories were operating at 75% of capacity during the quarter. In the quarter, the company has incurred Rs 28.60 crore of incremental costs specifically related to COVID-19, which are part of the results.

Commenting on the results, Suresh Narayanan, chairman and managing director, Nestle India said, The past three months have witnessed volatility, uncertainty and stresses that we had never imagined before nor experienced. This led to disruptions across the value chain of the company that has impacted our results, though we have built back momentum strongly as we ended the quarter. Relentless efforts, determined professional actions and abiding teamwork has led us to restore our eight factories almost to their pre-COVID manufacturing capabilities and our distribution capacity goes from strength to strength.”

“We delivered strong performance in the 'e-commerce' channel which grew by 122% this quarter and now contributes 3.6% to domestic sales. The demand in all 'Out of Home' consumption channels experienced a sharp decline due to the lockdown. However Nestlé brands enjoy trust, credibility and strength as far as “in home consumption” is concerned and this boosted sales of EVERYDAY Dairy Whitener, Nestlé a+ Milk, other milk based portfolio, NESCAFÉ Classic and NESCAFÉ Sunrise, all of which performed well this quarter. MAGGI also witnessed solid growth towards the end of the quarter after initial supply constraints. Overall, we accelerated our digital engagements across key parts of our portfolio, put out innovative campaigns to engage the consumers in many, while ensuring judicious application of marketing spends in line with the current business scenario.”

Shares of Nestle India fell 1.41% to Rs 17098.95. The result was announced after market hours today, 28 July 2020.

Nestle India operates in the Food segment. The firm food business incorporates product groups, which include milk products and nutrition, beverages, prepared dishes and cooking aids, and chocolate and confectionery.

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