Nestle India Q4 Results Review - Price Hike In Low Unit Packs Impacts Volumes: ICICI Direct

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. .ICICI Direct Report.Nestle India Ltd.'s net sales witnessed growth of 14.2% to Rs 4233.3 crore led by pricing growth. Domestic sales grew 13.8% to Rs 4061.9 crore led entirely by pricing growth and product mix changes. Exports were up 17.1% led by mix of volume and pricing growth.Domestic volumes were down 1% Impacted by de-growth in noodles segment specifically in ‘Maggi Chotu pack’. The company increased the 35- gram Maggi noodles price from Rs 5 to Rs 7. However, competition has not taken a price hike in smaller stock keeping units.The sales growth in mega cities (more than 40 lakh population) have remained strong at 12% in Q4. However, it was somewhat impacted by price hike in smaller pack. The sales growth in Metro cities (more than 10 lakh and less than 40 lakh) and tier-I cities (more than 1 to less than 10 lakh) were stronger at 21% and 19%, respectively. In tier-II to Tier-six towns (less than one lakh), sales growth de-accelerated at 5% largely due to price hike taken in Maggi noodles low unit pack. The growth in villages has been strong at 25% during the quarter. Nestle India is continuously expanding its distribution reach in rural India, which is leading to such strong growth. Rural regions contribute 20% to the Nestle India’s domestic sales.Nestle India direct reach has increased from 1.4 million retail outlets to 1.5 million outlets. Its total coverage stands at 5.1 million retail outlets..Click on the attachment to read the full report:.More Research Reports On Nestle India's Q4 CY22 Results Review.Weak Volume; Cost Control Supports Margin: HDFC SecuritiesInline; Volumes Under Pressure: Motilal Oswal.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 Q4 Results Review - Price Hike In Low Unit Packs Impacts Volumes: ICICI Direct

The company increased the 35- gram Maggi noodles price from Rs 5 to Rs 7.

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