Nestle India said on Thursday its net profit in the fourth quarter increased 65.5 per cent to Rs 628.06 crore, crediting the performance to urban and rural sales.
Revenue for the company, which follows a January-December financial year, was up 13.6 per cent at Rs 4256.7 crore.
Domestic sales of the maker of Maggi noodles and KitKat chocolates were up 13.9 per cent at Rs 4061.8 crore in the quarter. Export sales were up 17.1 per cent to Rs 171.4 crore.
“We delivered our highest double-digit growth in a decade led by sustained volume and mix-led growth, leading to a strong value growth,” said Suresh Narayanan, chairman and managing director of Nestlé India, in a press statement.
“Our robust performance on e-commerce continued, fuelled by quick commerce and click & mortar. Out-of-home (OOH) business made a strong comeback in 2022, recovering its pre-covid base and delivering robust growth by revamping, resetting geography, channel and sales priority,” he said.
The company strengthened its ‘RURBAN’ (rural + urban) approach by sharpening its geographic focus, increasing distribution points, and going deeper into smaller towns and cities.
Investment and execution in RURBAN is helping Nestle India in growing in smaller towns and villages, said Narayanan.
The company saw strong growth in prepared dishes and cooking aids segment, as a balance of product mix, pricing and volume helped sales of Maggi Noodles and Maggi Masala-ae-Magic.
Milkmaid and ready-to-drink (RTD) offering registered strong growth, but milk products continued to face challenges due to price rise.
In confectionery, Nestle India gained market share and delivered robust growth driven by Kitkat and Munch.
Nescafé Classic, Nescafé Sunrise, Nescafé Gold delivered broad-based double-digit growth. It also recorded the highest ever single year growth in household penetration, and also closed the year with highest ever market share.
In its commodity outlook for the short to medium term, Nestle India expects key categories such as cereals, grains and coffee to continue to be at a 10-year high. Edible oil too was at a 10-year high and moderated towards the last quarter.
Fresh milk prices continue to remain firm due to Lumpy Skin Disease in the second half of 2022 and rise in feed costs to farmers, it said.
“With some respite in crude oil, input materials such as packaging have witnessed relief. Demand continues to be robust with domestic outlook of prices evolving because of supply and weather conditions,” said the company in the statement.