The overall growth has been pricing-led with material cost inflation eating into the company’s profitability. There has been a 24% jump in raw material costs and a 20% increase in other expenses over the same quarter a year earlier. The management, in the company’s earnings call, mentioned 2022 inflation being five times the past trend.
ET Intelligence Group: Nestle India announced its second-quarter results with a 16% growth in net sales, a 4% drop in net profit and a 300-basis-point decline in operating margin.
The company follows the calendar year as its financial year. Incidentally, the base quarter was impacted by the second wave of Covid in the country.
The overall growth has been pricing-led with material cost inflation eating into the company’s profitability. There
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