Nestle India's Apr-Jun net profit up 11% on higher sales

Source :IANS
Author :IANS
Last Updated: Wed, Jul 29th, 2020, 10:08:12hrs

New Delhi: Nestle India on Tuesday reported an 11.15 per cent rise in its net profit for the quarter ended June on a year-on-year basis on the back of rise in sales and lower taxes.

Its profit after tax for the April-June quarter of 2020 stood at Rs 486.6 crore, against Rs 437.8crore recorded in the corresponding period of last year.

Sales of the company rose 1.96 per cent to Rs 3,041.4 crore during the period under review, the company said in a regulatory filing.

Suresh Narayanan, Chairman and Managing Director, Nestle India, said that the past three months have witnessed volatility, uncertainty and stresses that the company had never imagined before, nor experienced.

"This led to disruptions across the value chain of the company which has impacted our results, though we have built back momentum strongly as we ended the quarter," he said.

The maker of Maggi delivered strong performance in the e-commerce channel which grew by 122 per cent during the quarter and now contributes 3.6 per cent to the domestic sales.

"The demand in all ‘out of home' consumption channels experienced a sharp decline due to the lockdown. However, Nestle brands enjoy trust, credibility and strength as far as ‘in home consumption' is concerned and this boosted the sales of EVERYDAY Dairy Whitener, Nestle a+ Milk, other milk based portfolios, NESCAFA% Classic and NESCAFA% Sunrise, all of which performed well this quarter," Narayanan said.

He noted that Maggi also witnessed solid growth towards the end of the quarter after initial supply constraints.