Nestle India Q2 net up 10% on robust sales

Food products company Nestle India reported a 10% increase in its net profit at Rs 214 crore for the quarter ended June 2011 as compared to Rs 195 crore during the same periodlast fiscal. The growth in profits came on account of robust sales across all categories. During the quarter domestic sales for Nestle India increased by 21% and exports grew by 11%.

"We have now, for the 18th consecutive quarter delivered profitable double-digit growth. This is clearly the result of consistent execution of our focused strategy by our people," said Antonio Helio Waszyk, chairman and managing director, Nestle India.

The net sales was up 20% at Rs 1,763 crore as compared with Rs 1,466.7 crore in the same period last fiscal. The company calculates its fiscal year from January to December.

The company said that the cost of materials for goods sold in percentage of net sales has increased. "This is largely due to higher commodity prices, mainly milk solids, green coffee and oils/fats, and partially offset by an improved product/channel mix and operational efficiencies," the company said in a statement.