The Indian arm of the Swiss food giant Nestle reported a net profit of 9.34 billion rupees ($112.03 million) for the three months ended March 31, compared with 7.37 billion rupees a year earlier. Analysts polled by LSEG, on average, had expected a profit of 8.71 billion rupees.
Nestle India’s revenue from operations climbed to 52.68 billion rupees, from 48.31 billion rupees a year earlier. This growth was driven by higher product prices and strong demand for its packaged food items, such as chocolates and biscuits. The company has also benefited from increased sales of coffee and noodles, despite raising prices on these products to protect its bottom line.
The strong performance by Nestle India comes despite parent Nestle SA reporting lower-than-expected organic sales growth in the first quarter. Nestle SA has also been grappling with higher input costs, which have pressured its margins. However, Nestle India has been able to offset these cost pressures by raising prices and increasing its sales volume.
Nestle India’s strong performance is a testament to the resilience of the Indian consumer goods sector. Despite facing challenges such as inflation and rising interest rates, consumer goods makers have seen steady demand for their products. This demand is expected to continue in the coming months, as consumers continue to prioritize essential food items.
