Nestle India has grown in double digits not only in large metros but also in small towns, and it has plans to further unlock the potential of small towns. They will do this with a healthy mix of a customized portfolio, enhanced distribution infrastructure, and deployment of resources and localised communication.
Nestle India has reported a 5 per cent growth in net profit at Rs 617 crore for the quarter ended September 30. The maker of Maggi noodles and KitKat chocolate reported a profit of Rs. 587 crore in the corresponding year-ago period.
The company said a drop in pandemic intensity and an increase in vaccination coverage contributed to broad-based growth across all food and beverage categories, and called out coffee and confectionery as categories which grew rapidly.
Nestle, which follows a January to December financial year, reported domestic sales growth at 10.1 per cent to Rs 3,687 crore during the reporting period, driven by volume and mix. The company reported net sales growth of 9.6 per cent to Rs. 3,865 crore for the quarter, as against Rs. 3,525.41 crore in the year-ago quarter.
According to MD, Suresh Narayanan, this quarter has seen the company deliver double-digit broad-based value growth in domestic sales across categories. He added that organised trade witnessed a resurgence in the third quarter, with strong revenue growth in the midtwenties after a muted second quarter which was impacted by the second wave of the pandemic.
Nestle said e-commerce channels showed strong acceleration on the back of convenience and pandemic-driven consumer behaviour.
The company flagged rising costs of packaging materials, rising fuel and transportation costs. It said out-of-home channels are on a recovery path with gradual openings of hotels, restaurants, offices, and malls. “There are signs of a return to preNestle India pandemic levels of business traction in some geographies, categories and channels,” Narayanan said.