Nestle India Ltd Share Price – NSE  /  BSE

FMCG, Mid Cap

Nestle India is incorporating millets as an ingredient to provide consumers with more diverse food options. In line with the government focus on millets, Nestle India is creating a differentiated food portfolio across brands that promotes millet as a more sustainable food option, through partnerships and product innovations. As a part of this initiative, Nestlé India has launched Nestlé a+ Masala Millet that contains bajra and can be eaten as a light meal at any time of the day.

Available in two lip smacking variants, Tangy Tomato and Veggie Masala, Nestlé a+ Masala Millet comes in a multi-serve pack priced at Rs. 175 for 240 gm and a single-serve pack priced at Rs. 30 for 40 gm. The product is high in fibre, with 30% less calories and free from added preservatives. It has been developed under the guidance of IIMR (Indian Institute of Millets Research). Nestlé India has already launched Nestlé CEREGROW Grain Selection with ragi, Nestlé MILO Cocoa Malt with bajra and Nestlé KOKO KRUNCH Millet-Jowar breakfast cereals.

Nestlé R&D Centre India, Manesar (a subsidiary of Nestlé S.A and a part of Nestlé's global R&D network) signed an MOU with Nutrihub-IIMR with an aim to collaborate in areas such as millet processing, health and nutrition benefits, millet sustainable regenerative agriculture practices and start-up collaborations.

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Net profit of Nestle India rose 36.87% to Rs 698.34 crore in the quarter ended June 2023 as against Rs 510.24 crore during the previous quarter ended June 2022. Sales rose 15.03% to Rs 4619.50 crore in the quarter ended June 2023 as against Rs 4015.98 crore during the previous quarter ended June 2022.

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Total sales increased by 15.03% year on year to Rs 4,619.50 crore in Q2 CY23. Domestic sales and export sales for the quarter ended June 2023 grew by 14.6% and 25.45% respectively.

Profit before tax (PBT) was at Rs 939.33 crore in Q2 CY23, up 35.11% from Rs 695.25 crore posted in Q2 CY22.

Total expenses rose 11.08% year on year to Rs 3,743.15 crore during the quarter. Cost of raw material consumed was Rs 1,977.46 crore (up 7.04% YoY) and employee benefits expense stood at Rs 457.24 crore (up 11.48% YoY) during the period under review.

Suresh Narayanan, chairman and managing director, Nestlé India said, “I am pleased to share that we have, yet again, delivered robust performance, with all product groups registering double digit growth. This is the fifth quarter in a row of double-digit growth across ALL product groups. Domestic sales growth is broad based and grew by 14.6%, on the back of prudent pricing and supported by mix and volume with targeted brand support. Key brands continued to perform well, led by KITKAT, NESCAFÉ and MAGGI among others.

The Out-of-Home business continued to deliver strong growth this quarter, through a pivot of dual strategies in terms of portfolio transformation and robust precise execution of differentiated channel and geography plans to harness big growth opportunities.

Our RURBAN strategy was helped by increasing distribution footprint with relevant portfolio, thereby achieving higher penetration. We witnessed strong growth across Mega cities and Metros, robust performance in Tier 1 to 6 towns and continued strength in rural markets. E-Commerce continued to perform strongly and now accounts for almost 6.5% of sales.

We have renewed and indeed accelerated our focus on brand building and continued to make relevant investments during this quarter.

In its commodity outlook, the company said that the commodities such as edible oils, wheat and packaging materials have been in the lower price range. A reversal of price trend is noted in fuels with prices softening in second quarter after reaching higher level towards the end of quarter one. In fresh milk, there has been price stability. Robusta prices are elevated and are expected to remain volatile.

Meanwhile, the firm's board has approved to change the financial year of the company to “April-March” from “January-December, subject to approvals.

Accordingly, the current financial year of the company shall be extended upto 31March 2024 covering a period of 15 months commencing from 1 January 2023 to 31 March 2024 and subsequent financial years of the company would begin from 1 April every year and end with 31March of the subsequent year, the company stated.

Nestle India manufactures internationally famous brand names such as Nescafé, Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid and Nestea and in recent years the company has also introduced products of daily consumption and use such as Nestlé Milk, Nestlé Slim Milk, Nestlé Dahi and Nestlé Jeera Raita.

Shares of Nestle India slipped 2.28% to Rs 22,284.15 on the BSE.

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In an exchange filing, the company stated, “The company has received a letter from The Industrial Promotion & Investment Corporation of Odisha Limited (IPICOL) informing that the State Level Single Window Clearance Authority (SLSWCA) in its meeting held on 10 July 2023 has approved 'in principle' the proposal of the company for setting up a food processing unit at Mundaamba, block - Jankia in the district of Khordha (Odisha) with an investment of about Rs 894.10 crore, subject to fulfilment of customary conditions by the company.”

Nestle India manufactures internationally famous brand names such as Nescafé, Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid and Nestea and in recent years the company has also introduced products of daily consumption and use such as Nestlé Milk, Nestlé Slim Milk, Nestlé Dahi and Nestlé Jeera Raita.

The FMCG major reported 24.69% jump in net profit to Rs 736.64 crore on 21% rise in revenue from operations to Rs 4,830.53 crore in Q1 CY23 over Q1 CY22.

Shares of Nestle India were down 0.07% to Rs 23,109.95 on the BSE.

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