Millennium Post

Nestle quarterly net profit rises 9.22% to Rs 311.29 crore

FMCG major Nestle India on Tuesday posted a 9.22 per cent increase in consolidated net profit of Rs 311.29 crore for the third quarter ended 30 September, 2014, as subdued demand continued to impact the sector.

The company had reported a net profit of Rs 285 crore during the same period last year, Nestle said in a BSE filing. Nestle follows January-December financial year.

Net sales of the company rose to Rs 2,557.8 crore for the third quarter, up 8.92 per cent compared to Rs 2,348.31 crore in the corresponding period of previous year.

Commenting on the results, Nestle India Managing Director Etienne Benet said: 'Despite input cost pressure, focus on various efficiency and cost containment programmes have enabled us to deliver healthy margins. We continue to rationalise the product portfolio to eliminate low margins stock keeping units (SKUs) which are not in line with our vision of nutrition, health and wellness or growth strategy.'

Nestle said that though sales dynamics are better, the company remains cautious as 'it is yet to feel the buoyancy from the external environment'.

Overall expenses during the quarter under review stood at Rs 2,107.48 crore, up 8.84 per cent compared with Rs 1,936.25 crore in the third of previous calender year. Nestle said cost of material consumed has increased mainly due to higher cost of milk and its derivatives in India, which is even higher than those in international markets. For the nine month period ended 30 September, the company posted a net profit of Rs 858.31 crore as against net profit of Rs 835.47 crore in the corresponding period last year.

Net sales of the company for the nine month period ended 30 September, rose to Rs 7,290.17 crore as compared to Rs 6,809.60 crore in same period in the previous fiscal.
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