Nestle India’s net profit down 4.3 per cent; acquires Purina Petcare
NEW DELHI,JULY 29: FMCG major Nestle India Ltd on Thursday posted a 4.31% decline in its net profit at Rs 515.34 crore for the quarter ended June 30 as compared to Rs 538.58 crore in the corresponding period a year ago. At the same time, however, Nestle India’s net sales were up 15.72% to Rs 4,006.86 crore during the quarter under review, as against Rs 3,462.35 crore a year ago.
Suresh Narayanan, Chairman and managing director, Nestlé India, said, “Our endeavour this quarter was to secure our ‘engines of growth in this inflationary context and to enable sharp overall business recovery when the pressures abate. The growth is broad-based and while being primarily driven by pricing, has a healthy underlying volume and mix evolution.”
In terms of categories, milk products and nutrition, confectionery and beverages witnessed double-digit growth across brands. The company also announced the acquisition of pet food business Purina Petcare India for an estimated Rs 125.3 crore, as part of a transaction that will see the company now own and operate the brand, globally owned by Nestle, as part of Nestle India.
“Pet food business has evolved very positively and has an exciting future with pet adoption on the rise post-pandemic. There are far greater synergies with evolution in channel strategies now than when the business was launched in 2018,” said Narayanan. “The Pet Food Business of Purina Petcare India has gained traction amongst Indian pet owners and established the Pet Food brands across key segments while building a robust pet speciality distribution network,” he added.
The company also launched the toddler food brand Gerber in India on Thursday. In the coming months, products tailored to the needs of the toddler segment, relevant and resonant to their nutrition needs in India would be introduced under the brand Gerber, the company said in an exchange filing.
-TNIE
