HDFC Securities: Nestle India - In-Line Q3 Result; Steady Recovery

Nestle India reported a healthy performance in the September quarter on the back of sustained demand for its packaged food items.

The Nestle birds nest logo sits on packets of white sugar on display ahead of a news conference to announce Nestle SA’s full year results in Vevey, Switzerland. (Photographer: Stefan Wermuth/Bloomberg)

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HDFC Securities Report

Nestle India Ltd.’s Q3 CY20 was healthy as the company clocked 10% YoY growth (our estimate 8%).

Packaged food category has done well, and the company’s performance in the past two quarters was steady (6.5% YoY growth).

Maggi, Kitkat and Nescafe (in-home consumption) posted double-digit growth.

Exports also bounced back with 9% YoY growth. Gross margin expansion was slower at 54 basis points YoY (58.1%).

Cost control initiatives led to Ebitda growth of 16.5% (our estimate 16%).

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HDFC Securities Nestle India Q2FY21 Results Update.pdf
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