Nestle India Q1 Results Review - Growth Moderation In A Tough Environment; Strength In The Core: Systematix

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Nestle India Ltd. delivered Q1 FY25 results significantly below our and consensus expectations. Revenue growth of 3% YoY (on a high base of +15%) was largely driven by pricing, with volume growth of 1% YoY impacted by subdued consumption demand amid ongoing food inflation concerns. Domestic sales grew slightly higher at 4% YoY, with all product groups delivering growth led by beverages growing in double-digits. Performance was strong in key channels of organized retail trade (double-digit growth) and out-of-home (now with 830+ branded kiosks) driven by portfolio innovations, ‘Rurban’ distribution expansion, penetration and premiumization. While gross margin expansion was robust at +280 basis points YoY to 57.6% aided by range-bound raw material costs, management flagged inflationary headwinds in some key inputs (coffee, cocoa, cereals and grains) which could limit gross margin expansion in coming quarters. With most of the gross margin gains getting re-invested in brand-building/ marketing spends (other expenses +11% YoY, +170 bps YoY to 24% of sales), operating margin expansion was limited to 40 bps YoY at 23.1%, leading to Ebitda/adjusted profit after tax growth of 6%/7% YoY. .Click on the attachment to read the full report:.Nestle India Q1 Results Review - Revenue Growth A Laggard: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nestle India Q1 Results Review - Growth Moderation In A Tough Environment; Strength In The Core: Systematix

Innovations and the company's reach expansion to support revenues, says the brokerage.

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Nestle India Q1 Results Review - Growth Moderation In A Tough Environment; Strength In The Core: Systematix

Innovations and the company's reach expansion to support revenues, says the brokerage.

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