Maggi instant noodles maker woos D-Street with 66% jump in quarterly net profit, Rs 75 dividend

Nestle India beat analysts' estimates with a year-on-year jump of 65.7 per cent in net profit for the quarter ended December 2022, sending strong signals to Dalal Street. Nestle shares ended stronger by Rs 316.3 or 1.6 per cent at Rs 19,562.1 after the earnings announcement.

Nestle reported a quarterly net profit that exceeded the expectations of analysts. | Image: Reuters

Nestle India on Thursday reported a net profit of Rs 628 crore for the quarter ended December 2022, marking a jump of 65.7 per cent compared with the corresponding period a year ago and exceeding analysts' estimates. The board of Nestle India — whose popular brands include Maggi — declared a dividend of Rs 75 per share.

The consumer products company's earnings announcement sent the Nestle India stock leaping into the green, rising by as much as Rs 554.2 or 2.9 per cent to Rs 19,800 apiece on BSE before settling at Rs 19,562 apiece for the day.

Nestle India's revenue growth came in at 13.6 per cent on a year-on-year basis, to Rs 4,257 crore for the three-month period, according to a regulatory filing.

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According to Zee Business research, the company's quarterly profit was estimated at Rs 617 crore and revenue at Rs 4341 crore.

Nestle India's margin — a key measure of profitability for businesses — remained unchanged at 22.9 per cent.

"2022 was an extraordinary year, where adversities were aplenty, where the efforts of the Nestle team and all our partners and stakeholders were stretched and where every new day brought a fresh challenge. Adversity also brings teams together to a common cause which is why they displayed calm, resolve, consistency in the face of storm by combating volatilities, using imagination, courage, thoughtful strategies which kept the growth engine growing. My heartfelt appreciation to each of my colleagues and partners for weathering the storm and coming out well," said Suresh Narayanan, CMD, Nestle India.

"I am delighted to share that we delivered our highest double-digit growth in a decade led by sustained volume and mix-led growth, leading to a strong value growth," he added.

The company's operating profit grew to Rs 973 crore for the quarter ended Decemmber 2022, from Rs 858 crore for the year-ago period. The firm's margin — a key measure of profitability for a business — remained unchanged at 22.9 per cent as the year-ago period.

The company's dividend was the final payout of 2022. Nestle India follows a January-December financial year.

Nestle India said it would hold its 64th annual general meeting (AGM) on April 12.

The Nestle India stock rose 2.7 per cent in the quarter ended December, a period in which headline indices Sensex and Nifty50 gained 5.9 per cent each.

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