Nestlé has invested Rs 1,000 cr of its Rs 2,600 cr commitment to India: Suresh Narayanan

Nestlé India has shown resilience as per its results for Q2 of 2021, recording growth with business continuity. Total Sales and Domestic Sales for the quarter increased by 13.8% and 13.7%, respectively, on a base impacted by COVID-19 induced lockdown with production disruptions across factories. Domestic Sales growth was driven by volume and mix. Export Sales increased by 17.7% due to timing of exports to affiliates.

Key Financial Highlights of Q2 2021

  • Total Sales of Rs 3,462 crore
  • Total Sales Growth at 13.8%. Domestic Sales Growth at 13.7%.
  • Profit from Operations at 22.2% of Sales
  • Net Profit of Rs 539 crore
  • Earnings Per Share of Rs 55.86
  • Key products – Maggi Noodles, KitKat, Nestlé Munch, Maggi Sauces, Maggi Masala-ae-Magic posted strong double-digit growth.
  • Strong performance in e-commerce channels, grew by 105% and contributed 6.4% of domestic sales.

In H1 2021, Nestlé’s hyperlocal (quick commerce) channels grew by 147%. Contribution of innovations to domestic sales has been growing and now stands at 4.9%. The company hired over 1,000 people through regular hiring, apprenticeship and internship in this period. Nestlé’s also invested about Rs 25 crore in a range of sustainability projects.

Commenting during the Q2 2021 results, Suresh Narayanan, Chairman and Managing Director, Nestlé India, said, “Last year, our commitment to India made us articulate an ambition to invest Rs 2,600 crore (Rs 26 billion) over a 3-4-year period. I am pleased to announce that out of this, we have already invested about Rs 1,000 crore (Rs 10 billion) thus far. This is a vindication of our confidence and trust in the Nestlé journey in India.”

He further said, “Our efforts to ensure last mile access were aided by e-commerce and in particular hyperlocal (quick commerce) channels, which grew by 147% in the first half of this year.”

“We contributed about Rs 15 crore (Rs 150 million) towards CSR spends in the areas of nutrition awareness, COVID-19 relief initiatives, etc., this quarter. Further, our unwavering focus on sustainability continues and we have invested about Rs 25 crore (Rs 250 million) in a range of projects in the first half of the year,” Narayanan added.

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