Nestle India Q4CY21 Results: Net profit declined 20% YoY to Rs 386.66 crore; recommends a final dividend of Rs 65 per share

FMCG major Nestle India Ltd on Thursday reported a 19.99 per cent Year-on-Year (YoY) decline in the net profit at Rs 386.66 crore for the fourth quarter ended December 31, 2021, as the company faced inflationary headwinds on raw material inputs. It had reported a profit of Rs 483.31 crore for the corresponding quarter of the last financial year.

The Maggi maker follows a January-December financial year.

The company has reported an 8.44 per cent YoY rise in the sale of products at Rs 3,706.20 crore in the Q4CY21 compared to Rs 3,417.52 crore posted in the year-ago quarter.

The Board of Directors of the company has also recommended a final dividend for the year 2021 of Rs 65 per equity share (Face value Rs 10 per equity share) amounting to Rs 626.70 crore. The record date for the purpose will be April 8, 2022. It will be paid on and from April 26, 2022.

The total dividend for 2021 aggregates to Rs 200.00 per equity share which includes the first interim dividend of Rs 25.00 per equity share paid on May 19, 2021; and a second interim dividend of Rs 110.00 per equity share paid on November 16, 2021.

Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India said, "2021 was a very challenging year and I am proud of the determination of the team, our partners and stakeholders to face the context and continue to be inspired to grow."

Nestlé India witnessed broad-based, double-digit, volume and mix led growth, despite a highly volatile economic environment. Total sales and domestic sales for 2021 increased by 10.1 per cent and 10.7 per cent, respectively. Strong growth momentum continued in MAGGI Noodles aided by increased availability. KITKAT and MUNCH registered stellar growth throughout the year.

NESCAFÉ Classic continued to deliver double-digit growth. Growth in e-commerce was fuelled by new emerging formats such as 'Quick Commerce' and 'Click & Mortar'. We have progressed firmly and resolutely on our RURBAN journey and this has borne fruit with strong rural growth performance in addition to sustained growth in smaller town classes and urban agglomerates.

Besides, the company also said that its Sanand Factory in Gujarat is now fully operational and is meeting its highest standards. It added, the recent announcement by the Government of the PLI Scheme in Food Processing of which Nestlé India is a beneficiary will provide greater impetus to our manufacturing initiatives in the country.