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Nestle Q4 Results Review: Margins Contracts On Cost Pressures; Dolat Capital Maintains 'Reduce', Cuts TP

Although Dolat Capital believes Nestle’s growth rate and profitability will remain high in the long run, the company may also witness near-term demand and inflationary headwinds.

<div class="paragraphs"><p>Due to inflationary commodity prices, Nestle's gross margins contracted by 60bps YoY to 56.2%.&nbsp; (Photo Source: Company website)</p></div>
Due to inflationary commodity prices, Nestle's gross margins contracted by 60bps YoY to 56.2%.  (Photo Source: Company website)
Nestle's beverage portfolio achieved double-digit growth, driven by strong performance of core brands like NESCAFE; which also achieved significant market share gains from ‘NESCAFE SUNRISE’. Nestle further launched ‘NESCAFÉ ROASTERY’ in the premium coffee category. In Milk Products and Nutrition category, MILKMAID posted strong growth. Additionally, Nestle a+ extended its yoghurt range with launch of low-fat Greek yoghurt. In confect...
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