Growth Accelerate at Nestle, Reports 10% Jump in Q4 Growth

Nestle India on Thursday reported a 9.59% year-on-year increase in its net profit at Rs 341.76 crore for three months ended December 2018.

The FMCG major has also seen a 12% jump in domestic sales to Rs 2,690.51 crore.

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“We have, once again, delivered volume-led profitable growth. There has been double-digit growth in almost all the categories, supported by a step-up in demand generating activities including on new products,” said Suresh Narayanan, Chairman & MD, Nestle India by adding that their iconic brands like Maggi, Nescafe, Kitkat, Munch and Everyday continued to deliver strong performances.

The company follows the calendar year as its financial year so its earnings were for the fourth quarter.

The maker of instant Maggie noodles reported an 11.37% y-o-y increase in revenues to Rs 2,897.27 crore in the quarter.

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Nestle’s Ebitda margins for the quarter contracted by 272 bps y-o-y to 19.3%, compared with 22.02% in Q4CY17. Consequently, the Ebitda (earnings before interest, tax, depreciation and ammortisation) decreased by 2.38% y-o-y to Rs 559.2 crore compared with Rs 572.85 crore in Q4CY17.

Cost of materials consumed for the quarter increased by 9.2% to Rs 1,200.36 crore from Rs 1,098.96 crore in Q4CY17.