Nestle India reported a near 66 per cent increase in quarterly profit on Thursday, benefiting from price increases and strong demand for its chocolates and packaged foods in urban areas.
The Maggi noodles maker's profit rose to ₹628 crore ($75.98 million) for the fourth quarter ended December 31, from ₹279 crore in the year-ago period.
Sales of chocolates and biscuits in India have defied recent inflationary pressures, analysts have said, as Nestle's KitKat chocolates and rival Britannia Ltd's Little Hearts biscuits are seen as affordable treats.
For Nestle, revenue from operations climbed to ₹4,257 crore for the reported quarter, from ₹3,748 crore, a year earlier, on price increases and higher sales volume, it said.
"We delivered our highest double‐digit growth in a decade led by sustained volume growth," Managing Director Suresh Narayanan said in a statement.
Read also: Nestle India may hike prices, to venture into small towns
The Nescafe coffee maker also said its efforts to expand distribution in smaller towns and cities helped it drive topline growth there, especially in rural villages.
Dividend
The company also said its board had recommended a final dividend for ₹75 per share for 2022. Shares of the company were up nearly 2% on Thursday.
Nestle India's parent, however, separately reported weaker than expected full-year net profit despite price increases.