afaqs! news bureau

Nestle India announces cut in marketing spends

The FMCG major has announced this during its Q4 23 earnings call.

FMCG major Nestle India has announced a 66% year-on-year (YoY) incerease in net profit at Rs 628 crore for the fourth quarter ended December 2022. The profit stood at Rs 379 crore in the corresponding quarter last year.

During the earnings call the company told the investors that marketing spend has been cut. “Other expenses as a percentage of sales are positively influenced by lower marketing spend and a conscious effort to control cost, partly offset by the surge in fuel prices."

Suresh Narayanan, CMD, Nestle, "I am delighted to share that we delivered our highest double‐digit growth in a decade led by sustained volume and mix-led growth, leading to strong value growth. In 2022 total, sales grew by 14.5% and domestic sales increased by 14.8%, with broad-based performance across all categories."

The company revealed that its e-commerce channel delivered strong growth driven due to new formats like quick commerce and click & mortar. The quick commerce growth was fueled by new user acquisition initiatives through targeted digital communication.

The out-of-home (OOH) segment made a strong comeback in 2022 an the channel has recovered from its pre-covid base to deliver robust growth.

It also said that the milk products continues to face challenges due to unprecedented milk price hikes. Additionally, the confectionery segment gained market share and delivered strong growth driven by KitKat and Munch.

The prepared dishes and cooking aids saw a strong growth momentum continued with a healthy balance of product mix, pricing and volume growth in Maggi noodles and Maggi Masala-ae-Magic due to its strong consumer engagements, market presence with media campaigns and various consumer activations.

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