Nestle will always be on the lookout for opportunities for cost optimisation and productivity to balance sharp inflation and supply restraints.
The Giant Packaged Foods company said that the price outlook for key categories like edible oils, coffee, wheat, and fuel stays strong to bullish while the cost of packaging materials continues to increase within supply constraints and rising fuel and transportation costs. Input prices are expected to be in a bullish trend both globally and to some extent locally.
Nestle India managing director Suresh Narayanan said, “We continue to witness high inflation in our key raw and packaging materials, where many are at 10-year highs.” However, we will continue to make all efforts towards systematic efficiencies to mitigate the impact.
He termed 2021 as a “very challenging year” and the company witnessed broad-based, double-digit volume and mix-led growth despite a highly volatile economic environment. The company reported total sales and domestic sales increased by 10.1% and 10.7%, respectively, for the full year.
For the fourth quarter ended December 2021, Nestlé’s net profit fell 20% to Rs 387 crore, after a one-time loss of Rs 236.5 crore. Nestle reported a sales increase of 8.44% to Rs 3,706 crore, compared to Rs 3,417 crore in the same period last year.
The company reported strong growth momentum for its Maggi noodles, KitKat and Munch chocolates, and Nescafe Classic. Nestle, which follows a January-December financial year, said growth in e-commerce was fuelled by new emerging formats such as quick commerce and click and mortar.