Nestle India Q1 Results Review - Beat On Growth, Resilient Margins Merit Outperformance: Systematix

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. .Systematix Research Report.Nestle India Ltd. reported better-than-expected broad-based revenue growth and a resilient margin performance in Q1 CY23, despite the expected impact of raw material inflation. Significant improvement in pricing and mix aided the 21.3% YoY growth in revenue, implying mid single-digit (~6%) growth in volumes. Ebitda and profit after tax surged 19.7%/25.8% YoY, with strong cost controls offsetting the hit on gross margin, thereby limiting the impact on Ebitda. Growth saw a boost from ecommerce, accelerated by significant growth in quick commerce, new initiatives in out of home channel, which led to secular growth across brands, geographies and channels, and exports reporting strong double-digit growth through mainstream and ethnic channels. Despite the negative impact of Maggi small pack decline, volume performance was sturdy, resulting in the company posting a 10-year high quarterly sales growth; both mega cities and smaller towns/rural recorded strong growth. Margins could remain under pressure near-term, but softening prices of some commodities, improving premiumisation trends and cost efficiencies should help offset the pressure.We expect Nestle India’s continued dominance in its core categories, diversified portfolio and aggressive innovation initiatives to drive penetration-led growth..Click on the attachment to read the full report:.Nestle India Q1 Results Review - Strong Growth Across Verticals: Dolat Capital.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 Q1 Results Review - Beat On Growth, Resilient Margins Merit Outperformance: Systematix

Broad-based 21% growth in the domestic business.

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