Nestle India - Setting Up New Building Blocks: Motilal Oswal

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. .Motilal Oswal Report.Nestle India Ltd.’s CY22 annual report highlights its underlying strengths and the company remains one of the strongest revenue growth opportunities in the Indian consumer universe. The key takeaways are as follows: The company’s overall volume growth in CY22 stood at only ~5%, as it was adversely impacted by a sharp dip in volumes towards the end of the year. Given the unfavorable operating environment, Nestle India’s volume growth was healthy and better than its peers. The company does not disclose volume growth in its interim results. In CY22, the company witnessed strong volume growth in beverages (up ~14% YoY) and chocolate and confectionery (up ~12% YoY). On the other hand, volume growth was muted in the case of prepared dishes and cooking aids (up 5.7%, lowest since the Maggi crisis in 2015). Since prepared dishes constitutes ~61% of total volumes versus ~32% of sales, the company’s overall volume growth was adversely impacted.Volumes in milk and nutrition (41%/23% of total sales/volumes) were flattish in CY22, continuing with its disappointing trend. The segment has been reporting flattish volumes/decline in volumes for the past four out of five years. Volume growth has been robust across the other segments. Prepared dishes and confectionery segments have clocked double-digit volume compound annual growth rate since 2016, when Mr. Suresh Narayanan took charge. Milk and nutrition tonnage in CY22 was in line with CY09 levels.Click on the attachment to read the full report:.Rainbow Children’s Medicare - Riding On Paediatric, Perinatal Pedigree: ICICI Direct Initiates Coverage.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 - Setting Up New Building Blocks: Motilal Oswal

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