Nestle India Q2 Review - Strong Growth Performance; Near-Term Margin Headwinds Exist: Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Nestle India Ltd. delivered strong topline in domestic business with volume growth of ~8% on base of 12% while margins were under pressure amid elevated inflation across key raw materials. Company took price hikes of ~8.5% on the back of 15% overall inflation. Growth was broad-based across categories with strong double-digit growth especially in prepared dishes and confectionary. Strong rural growth despite rural headwinds albeit in a low base indicates strong progress on the rurban journey with distribution efforts in semi-urban/rural markets continuing to drive increase in category penetration. While gross margins have come under severe pressure, Nestle has been able to offset that partially with calibrated price hikes. Double-digit growth across segments other than the challenging milk products business, strong growth in ecommerce business and strong recovery in out-of-home business were positive takeaways. Acquisition of Purina Pet care and launch of Gerber brand in toddler category displays Nestle’s focus on building long term growth opportunities..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nestle India Q2 Review - Strong Growth Performance; Near-Term Margin Headwinds Exist: Yes Securities

Nestle India Q2 Review - Strong Growth Performance; Rich Valuations, Near-Term Margin Headwinds Exist: Yes Securities

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