With Total Sales of Rs 12,295 crore and Net Profit of Rs 1,969 crore, Nestle India recorded Profit from Operations at 21% of Sales, according to the approved results for the full year 2019 for the company. The Board of Directors of Nestlé India met on Thursday at Nestlé House and approved the results.
Commenting on the results, Suresh Narayanan, CMD, Nestlé India, said, “I am pleased to share that we have delivered broad-based volume and mix led growth. This is a trend we have demonstrated consistently in recent years. Maggi Noodles, Kitkat, Nestlé Munch, Ceregrow, Maggi Masala -ae- Magic, Nescafe RTD and Nangrow delivered strong performances during the year.”
He continued, “We continued to bring consumer relevant innovations and new launches like Kitkat Dessert Delight Rich Chocolate Fudge, Maggi Fusian Range and Milo Cocoa-Malt Beverage Mix which have witnessed encouraging response. The trend of higher commodity prices witnessed in recent quarters is likely to continue in the near future.”
He added, “As we enter the new decade, my team and I stay fully committed towards plastic waste management. Our determination and initiatives to make a difference has already shown significant results and many of our key brands like Maggi Noodles, Nescafe and Kitkat have become plastic-neutral in the year 2019. This reinforces our belief in sustaining our business progress while addressing environmental challenges.”
Highlights for the quarter and year ended Dec 31, 2019
1. Total Sales and Domestic Sales for the year increased by 9.6% and 10.9% respectively. Domestic Sales growth is broad-based largely driven by volume & mix. Export Sales decreased by 9.9% due to lower exports of coffee to Turkey.
2. Total Sales for the quarter increased by 8.8%. Domestic Sales increased by 10.0% through a combination of volume & mix. Export Sales dropped by 9.7% due to lower exports of coffee to Turkey.
3. Tax Expense (including revaluation of deferred tax assets & liabilities) from April 1, 2019, to December 31, 2019, has been computed at the rates introduced by the Taxation Laws (Amendment) Ordinance, 2019 dated September 20, 2019. Accordingly, ‘Net Profit after Tax’ and ‘Earnings per share’ for both the quarter and year have been positively influenced by the lower tax rates.
Dividend
The Board of Directors have recommended a final dividend of Rs 61 per equity share amounting to Rs 5,881.4 million for the year 2019. The total dividend for 2019 aggregates to Rs 342 per equity share which includes first interim dividend of Rs 23 per equity share paid on May 15, 2019; second interim dividend of Rs 23 per equity share for 2019 out of current year profits and a special interim dividend of Rs 180 per equity share out of accumulated profits of previous years both paid together on August 23, 2019; and the third interim dividend Rs 55 per equity share paid on December 20, 2019.
The final dividend is subject to approval by the shareholders at the ensuing Annual General Meeting of the company and therefore has not been recognised as a liability in the balance sheet on December 31, 2019, in line with Ind AS 10 ‘Events after the Reporting Period.
