Nestle's full year net profit up 17.45 pc

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SME Times News Bureau | 15 Feb, 2012
Fast moving consumer goods (FMCG) major Nestle India Tuesday reported a rise of 17.45 percent in its full year (2011) net profit, which stood at Rs.961.6 crore from Rs.818.7 crore in 2010.

The company's net sales for year ended Dec 31 increased by 19.8 percent at Rs.7,490.8 crore from Rs.6,254.75 crore in 2010.

Domestic sales increased by 20.2 percent at Rs.7,095.03 crore, while export growth was adversely impacted by the ban on exports of milk powder.

"While the current environment is uncertain and volatile requiring cautious attention, we continue our journey," Nestle India's chairman and managing director A. Helio Waszyk said.

"We are just starting to operate the Rs.2,000 crore investments made in manufacturing and distribution, creating additional jobs," Waszyk added.

The company said that its various initiatives to offset higher input cost due to inflation is on track, which has resulted in reduction of material cost for goods sold as percentage of net sales.

However, the company said that the increase in its tax expense was due to the completion of five years of its Pantnagar (Uttarakhand) factory, which resulted in reduction of 100 percent income tax holiday to 30 percent of the profits.

For the quarter ended Dec 31, 2011, the FMCG major reported a rise of 17 percent in its net sales at Rs.1,954.7 crore over the corresponding quarter in 2010.

The board of directors of the company have recommended a final dividend of Rs.12.50 per equity share with nominal value Rs.10 per equity share for 2011.

"This is in addition to the two interim dividends for 2011, of Rs.9 and Rs.27 per equity share paid in May 2011 and December 2011 respectively," the company said in a statement.