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Motilal Oswal: Nestle India Annual Report Analysis - Committed Efforts Underway To Ensure Sustained Double-Digit Sales Growth   

Motilal Oswal: Nestle India Annual Report Analysis - Committed Efforts Underway To Ensure Sustained Double-Digit Sales Growth

A bird’s nest logo sits on display at the Nestle SA headquarters in Vevey, Switzerland. (Photographer: Stefan Wermuth/Bloomberg)
A bird’s nest logo sits on display at the Nestle SA headquarters in Vevey, Switzerland. (Photographer: Stefan Wermuth/Bloomberg)

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Key highlights from the Nestle India Ltd.’s analyst meet -

Milk and nutrition was the biggest contributor to sales growth in 9M CY20.

The recent trend in prepared dishes (Maggi), particularly post the supply-chain issues experienced in Q2 CY20, is very encouraging; a spectacular 19.1% sales growth was reported in Q3 CY20.

The management indicated that advertisement spends were cut in Q2 CY20 when sales were impacted.

While this led to an overall 120 basis point reduction in ad spends in 9M CY20, it is not likely to be a sustained reduction.

Click on the attachment to read the full report:

Motilal Oswal Nestle India Company Update.pdf

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