Maggi, dairy products and coffee maker – Nestle India – on Tuesday reported that its net profit in quarter ended June 30, 2020 rose 11.14 per cent to Rs 486.6 crore from Rs 437.79 crore during the same quarter last year. Its revenue from sale of products advanced 2 per cent annually to Rs 3,041.45 crore.
“Total Sales increased by 2 per cent. Domestic sales increased by 2.6 per cent. Export sales declined by 9.3 per cent. Sales were adversely impacted due to the COVID 19 induced lockdown leading to production disruption across factories. Demand in Out of Home channel was severely reduced,” Nestle India said in a statement.
On an average, the factories were operating at 75 per cent of capacity during the quarter and in the quarter, the company has incurred Rs 28.6 crore of incremental costs specifically related to COVID 19, which are part of the results, Nestle India added.
“The past three months have witnessed volatility, uncertainty and stresses that we had never imagined before nor experienced. This led to disruptions across the value chain of the Company that has impacted our results, though we have built back momentum strongly as we ended the quarter,” Suresh Narayanan, Chairman and Managing Director, Nestle India said.
“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 sales of EVERYDAY Dairy Whitener, Nestle a+ Milk, other milk based portfolio, NESCAFE Classic and NESCAFE Sunrise, all of which performed well this quarter. MAGGI also witnessed solid growth towards the end of the quarter after initial supply constraints,” Mr Narayanan’s statement added.
Nestle India shares ended 1.41 per cent higher at Rs 17,098, underperforming the Sensex which rose 1.5 per cent.