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Nestle quarterly net rises 2.34 % to Rs 267 crore

Nestle quarterly net rises 2.34 % to Rs 267 crore
Fast moving consumer goods (FMCG) giant Nestle India on Monday posted a 2.34 per cent increase in net profit to Rs 267.31 crore for the third quarter ended September 30, 2012.

The company had posted a net profit of Rs 261.18 crore during the corresponding period of the previous financial year (2011-12), Nestle India said in a filing to the Bombay Stock Exchange (BSE).

Net sales of the company rose to Rs 2,115.59 crore for the quarter against Rs 1,963.10 crore during the same period of 2011-12.

Net domestic sales have increased by 7.6 per cent, mainly on account of net realisations and product mix, the company said in a statement.

'Domestic sales growth during the quarter has been adversely impacted by portfolio/channel optimisation and pricing for value in certain products,' it added.

The shares of Nestle closed at Rs 4,820 apiece on the Bombay Stock Exchange on Monday, down 0.93 per cent from their previous close.

Commenting on the results, Nestlé India Chairman and Managing Director (CMD) Antonio Helio Waszyk said, 'We have completed our close to Rs. 2,500 crores manufacturing expansion and are distributing our products in 4 million outlets. We stand by our strategy of long-term sustainable profitable growth. As anticipated, 2012 is proving to be a challenging year.'

'While some actions such as portfolio rationalisation, channel prioritisation, focused innovations and NCE implementation have started to yield results, other corrective actions on demand generation in specific categories will take some time,' he added.

'The strength of our brands, business model and organisation gives us the resilience to cope with the new realities,' observed Waszyk.  
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