Nestle net rises 14.6%, sales up 8.9% on Covid-led in-home consumption

FMCG major Nestle India Ltd reported a 14.62% rise in its net profit to Rs 602.25 crore for the quarter ended in March 2021 driven by increase in sales volume of its key products.

The company, which follows January-December financial year, had posted a profit of Rs 525.43 crore in the same period a year ago.

Its net sales were up 8.9% to Rs 3,600.20 crore during the period under review as against Rs 3,305.78 crore in the corresponding period last fiscal, it said.

According to the company, "Growth broad-based and largely driven by volume and mix" as "key products boosted by in-home consumption and posted double-digit growth".

Though demand in 'Out of Home' channel further improved in the quarter but continues to be impacted by COVID.

Nestle India's domestic sales were up 10.17% to Rs 3,442.03 crore as against Rs 3,124.23 crore of the

January-March of 2020. While export sales were down 12.9% to Rs 158.17 crore as against Rs 181.55 crore of the corresponding quarter.

"Domestic Sales increased by 10.2% driven by volume & mix and is broad based. Export Sales were lower by 12.9% due to lower exports to affiliates," said Nestle India in a post earning statement.

Nestle India has witnessed 66% growth in sales from the e-commerce channel, which contributed 3.8% of domestic sales.

"Noteworthy has been e-commerce which continued to deliver strong performance and grew by 66% to maintain its robust contribution to our domestic sales," it said.