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Nestle India reported 18.3 percent growth in its domestic business which is the highest in the last five years. The company attributed the growth to strong sales volume and broad-based double-digit growth across categories.

Growth in particular has been strong in large metros and mega cities, according to the company. Rural markets and smaller towns also witnessed robust growth

For the September quarter, Nestle India reported revenue of Rs 4,591 crore, higher than the CNBC-TV18 poll of Rs 4,388 crore.

The company's operational performance was also stronger than expected. EBITDA came in at Rs 1,017 crore while net profit went up to Rs 668 crore in the September quarter (see comparison below in chart).

Growth in the exports business stood at 15.7 percent during the quarter.

Nestle India's gross margins declined over 350 basis points to 52.8 percent. The management said that the costs of fresh milk, fuels, grain and green coffee continue to remain firm. On the other hand, the company is seeing early signs of stability in raw materials like edible oil and packaging materials.

Here's how Nestle India's various business segments during the quarter:

E-Commerce: Contributed 7.2 percent to overall quarterly sales with growth largely fueled by new, emerging formats like quick commerce and click and mortar.

Organized Trade: Strong growth across customers and categories in the wake of high footfalls

Out of Home: Grows at a robust pace driven by faster channel reopening and business-led initiatives

Prepared Dishes & Cooking Aids: Growth was driven by MAGGI noodles, aided by media and distribution expansion

Milk Products: Strong growth seen in MILKMAID. Overall segment does well

Confectionery: Strong performance led by aggressive media campaign, festive execution, consumer promotions and focused distribution drive

Beverages: Strong growth in NESCAFE CLASSIC, SUNRISE, and vending mixes.

The board has also approved a second interim dividend for the year of Rs 120 per share, which will amount to Rs 1,157 crore. The dividend will be paid on and from November 16 this year. The company had earlier declared an interim dividend of Rs 25 in May.

Shares of Nestle India gained as much as 1.2 percent post the earnings announcement to Rs 19,734 as of 11:30 AM.

First Published:Oct 19, 2022 11:32 AM IST