The maker of Kit Kat chocolate is also seeing a slow revival in consumption with the urban market being more resilient compared to rural India, according to its annual report for 2017.
Nestle India reported a sales growth of 11.8 percent in 2017 (after adjusting for Goods and Services Tax) on the back of increased volumes, especially in the Maggi brand, it said in its annual report for 2017. Its volumes rose 11 percent. That, according to a Credit Suisse report, is the highest growth in the calendar year 2017 for any consumer goods maker.
“2018 is going to be about bringing consumers closer to being responsible, transparent and focusing on sustaining long-term relationships that add value. The industry is evolving at a tremendous pace and we would like to ride the tide and ahead of the curve”, said Suresh Narayanan, Chairman & Managing Director, Nestle India.
The key takeaways from the annual report:
- The industry is evolving at a tremendous pace and Nestle would like to stay ahead of the curve.
- Sales growth for 2017 was 11.8 percent (GST adjusted) due to increase in volumes, especially those of Maggi.
- Volumes of Maggi’s core category noodles rose in double digits in 2017.
- Volume growth of around 11 percent in 2017 on a blended portfolio basis.
- Growth in 2017 was mainly on account of volume growth and not price growth.
- Slow revival of consumption with the urban market being more resilient compared to rural India.
- Fortifying many of mass consumption products with micronutrients to counter under-nutrition, especially among lower-income consumers.
- Making inroads into newer geographies like the Caribbean Islands, European Union and Sri Lanka.
- Continue to strengthen confectionery portfolio with core brands of KitKat, Munch, Bar One and Milky Bar.
- Beverages grew around 11 percent in volumes while chocolates grew 4 percent in volumes.
- Milk and nutrition see volume growth after five years.
- Cash balance increases to Rs 1,448 crore in December 2017 from Rs 869 crore in the previous year.