On Thursday, FMCG giant Nestle reported a net profit of ₹698.3 crore for Q2CY24, with a substantial growth of 35.6% compared to ₹515 crore in the same quarter of the previous year.
The company’s revenue during Q2CY24 experienced a healthy growth of 15.4%, reaching ₹4,658.5 crore from ₹4,036.6 crore, YoY. Its domestic sales grew by 14.6%.
However, on a sequential basis, the net profit declined by 5.1%, and revenue saw a 3.56% drop, QoQ. Reports indicate that Nestle India’s Q2 underlying volume growth was at 4-5%, which fell below analysts’ expectations.
During the April-June quarter, EBITDA rose by 24.7% to ₹1,058.8 crore from ₹849.1 crore, YoY. The EBITDA margin also saw improvement, increasing by 170 basis points (bps) to 22.7% from 21% compared to the previous year.
As per Company sources, MAGGI Noodles and its Milk Products and Nutrition business were the key players in the revenue growth. The Confectionery segment also experienced double-digit growth.
The company’s board of directors approved changing the Financial Year of the company to “April – March” from “January – December,” subject to approvals. Consequently, the current Financial Year of the company would be extended until March 31, 2024, covering a period of 15 months from January 1, 2023, to March 31, 2024. Subsequent Financial Years of the Company would begin from April 1 each year and end on March 31 of the subsequent year.
Following the announcement of Q2 results with lower volume growth than expected, Nestle India’s share price dropped more than 2%. The stock fell as much as 2.08% to at ₹22,325.30 apiece on the NSE.