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Nestle India sees potential in small towns, records growth in double digits

Nestle India sees potential in small towns, records growth in double digits
After recording growth in double digits in large metros and small towns across the country, Nestle India sees potential of small towns.

Business

Nestle India sees potential in small towns, records growth in double digits

After recording growth in double digits in large metros and small towns across the country, Nestle India hopes to unlock potential of small towns. In its earning statement, the company said they are on a journey to accelerate this further by a healthy mix of a customized portfolio.




It is looking to deploy enhanced distribution infrastructure, resources and localized communication. Nestle India in its latest earnings recorded a 5% growth in net profit at Rs 617 crore for the quarter ended September 30. The world’s largest food and beverage company reported profit of Rs 587 crore in the corresponding year-ago period.

Nestle India highlighted that decline in COVID-19 pandemic intensity and increase in vaccination coverage contributed to broad-based growth across all food and beverages categories, and called out coffee and confectionary as categories which grew rapidly. It reported domestic sales growth at 10.01% to Rs 3,687 crore during the reporting period, driven by volume and mix. It also had a net sales growth of 9.6% to Rs 3,865 crore for the quarter, as against Rs 3,525.41 crore in the year-ago quarter.

Suresh Narayanan, Nestle India MD, in a statement said that the quarter has seen the company deliver double-digit broad-based value in domestic sales across categories. He said organized trade witnessed resurgence in the third quarter with strong revenue growth in mid-twenties after a muted second quarter which was impacted by the second wave of the COVID-19 pandemic.

“E-commerce channels showed strong acceleration on the back of convenience and pandemic-driven consumer behavior. The company flagged rising costs of packaging materials, rising fuel and transportation costs.”


Also Read: P&G India to invest Rs 500 crore through its Rural Growth Fund


Narayanan pointed out that out-of-home channels are on a recovery path with gradual openings of hotels, restaurants, offices and malls. “There are signs of a return to pre-pandemic levels of business traction in some geographies, categories and channels.”


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