Nestle Q1 sales rises 10.2% with volume-led growth; firm flags headwinds in commodity prices

New Delhi: Packaged foods company Nestle India, which reported year-on-year domestic sales growth of 10.2% and overall sales of Rs 3,600 crore for the first quarter ended March 2021 ahead of street estimates, flagged operating volatility and headwinds in commodity and packaging materials as concerns amid the ongoing pandemic.

Nestle, which follows a January-December financial year, reported 14.6% year-on-year growth in net profit to Rs 602 crore for the quarter under consideration. Overall sales increased by 8.9% during the quarter, at Rs 3,610.8 crore, on the back of volume-led growth and higher in-home consumption.

The company reported double digit growth for its mainstay brands Maggi instant noodles, Nescafe Classic coffee, Milkmaid condensed milk and KitKat chocolate.

“Recent sharp escalations in key raw material prices pose challenges that we will resolutely respond to,” Nestle chairman Suresh Narayanan said in a statement.

The company said it is initiating vaccination camps for those eligible at factory locations. E‐commerce grew 66% in the quarter, contributing 3.8% to its overall domestic sales, it said in a BSE filing.