Packaged foods company Nestle India announced the acquisition of pet food maker Purina Petcare for Rs 123.5 crore, and the launch of its global child nutrition brand Gerber on Thursday.
The company, which also announced its June quarter earnings, said it is witnessing early signs of softening of commodities like edible oils and packaging materials. “Fresh milk, fuels, grains and green coffee costs are expected to remain firm with continued increase in demand and volatility,” Nestle said in a regulatory filing.
The maker of Maggi noodles and Nescafé coffee reported a decline of 4.31 per cent in its net profit at Rs 515.34 crore for the quarter ended June 30, 2022. The company, which follows the January-December financial year, had posted a net profit of Rs 538.58 crore in the corresponding period a year ago, it said in a regulatory filing.
However, Nestle India’s net sales were up 15.72 per cent to Rs 4,006.86 crore during the period under review, breaching the Rs 4,000 crore mark.
Suresh Narayanan, chairman of Nestle said in a statement: “The growth is broad based and while being primarily driven by pricing, has a healthy underlying volume and mix evolution.”
He said ‘out of home’ space got back to accelerated growth in channels like hotels, education centres and workplaces.
Nestle said in the coming months, it would launch products tailored to the needs in the toddler segment, under the brand Gerber.
E-commerce sales contributed 6.4% to its quarterly sales, while organised trade channel witnessed strong growth on a subdued base, the foods company said.
