Nestle India on Thursday reported a 15 per cent year-on-year (YoY) Profit After Tax growth at Rs. 698.3 crore for the second quarter of calendar year 2023.
The company reported a revenue growth of 15.2 per cent YoY to Rs. 4,658.3 crore in Q2CY23, exceeding market expectations of Rs. 4,629.7 crore.
According to the brand, the revenue growth was supported by overall broad-based growth in its domestic business, with its key brands – Kitkat, Nestle, and Maggi on a robust growth trajectory.
The company also witnessed a 14.6 per cent YoY rise in domestic sales at Rs. 4,420.8 crore in Q2CY23, while export sales stood at Rs. 198.7 crores with 25.5 per cent YoY increase supported by proliferation of its products – Nescafe Sunrise and Polo.
Its earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 29.6 per cent YoY to Rs. 1,055.5 crore, beating market estimates of Rs. 1,025.6 crores. The EBITDA margin improved to 22.7 per cent in Q2CY23 compared to 20.1 per cent in Q2CY22 with a fall in barley, palm, and crude oil prices while milk and coffee price continue to remain firm.
In another significant development, the Board of Directors of Nestle India approved changing the Financial Year of the company from “1st January – 31st December” to 1st April – 31st March”, subject to approvals.
Therefore, the current Financial Year of the company shall be extended upto 31st March 2024, covering 15 months commencing from 1st January 2023 to 31st March 2024.
