Nestle India posts higher quarterly profit on strong urban demand

Feb 7, 2024

Bengaluru: Nestle India An increase of about 16% was recorded in quarterly profit Profit from stable on Wednesday urban demand For this can foodincluding the nescafe A range of coffee and KitKat chocolates.
The Indian arm of Swiss giant Nestle SA said profit before exceptional items and tax rose to Rs 9.94 billion ($119.8 million) in the fourth quarter ended December 31.
It recorded a one-time charge of Rs 1.07 billion due to changes in its pension plan, according to a regulatory filing.
Axis Securities analyst Priyam Tolia said Nestle India has outperformed its large-cap peers as it has a smaller presence in rural areas and faces limited competition in its core coffee, noodles and baby food businesses.
Meanwhile, Dove soap maker Hindustan Unilever reported a marginal rise in quarterly earnings, while biscuit maker Britannia Industries reported a decline due to weak rural demand and increased competition.
Shares of Nestle India, known for Maggi noodles and Cerelac baby food, rose 2% after the results.
Nestle India, which declared an interim per-share dividend of Rs 7, reported an 8.1% rise in revenue to Rs 46 billion, helped by double-digit growth in its beverages business.
Urban consumers with higher disposable incomes spent more on coffee and noodles despite rising prices of essential commodities, benefiting packaged food makers with a large presence in cities, including Nestle India and Yippee noodles maker ITC.
Separately, Nestle India approved the slump sale of its Nestle Business Services division, which helps the packaged food maker optimize costs and introduce more automation, to its subsidiary Purina Petcare India for Rs 798 million. in dealing.
Nestle SA's results are due on February 22. ($1 = 82.9620 Indian Rupees)

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