Nestle India Q4 Results Review - Weak Volume; Cost Control Supports Margin: HDFC 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. .HDFC Securities Institutional Equities.Nestle India Ltd. reported a miss on revenue while the margin was ahead of expectations. Domestic revenue was up by 14/15% YoY in Q4/CY22, delivering a three-year compound annual growth rate of 11%. However, Nestle witnessed ~2% YoY volume contraction in Q4 due to sustained inflation impacting demand in the semi-urban market (mainly low unit packs). Volume deceleration was sharp as the company posted 8% volume growth in nine months-CY22. Most packaged food companies delivered similar price-led healthy revenue growth with weak volumes. Gross margin improved by 200bps QoQ but continued to contract by 200 basis points YoY to 55% (59% two years back). Cost control protected the Ebitda margin, which was up 20 bps YoY to 23.4%, after contracting for the last five quarters. Ebitda grew by 14.5/6% YoY in Q4/CY22. Nestle continued to focus on distribution strengthening, category expansion and capacity building (capex of Rs 50 billion planned for the next three years). .Click on the attachment to read the full report:.Nestle Q4 Results: Profit Rises 65%, Beats Analysts' Estimates.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 - Weak Volume; Cost Control Supports Margin: HDFC Securities

Nestle India reported a miss on revenue while the margin was ahead of expectations.

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Nestle India Q4 Results Review - Weak Volume; Cost Control Supports Margin: HDFC Securities

Nestle India reported a miss on revenue while the margin was ahead of expectations.

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