Motilal Oswal: Nestle India - Resumption Of Double-Digit Sales Growth Is Encouraging  
A pedestrian passes a Nestle SA logo at the Nescafe factory, operated by Nestle SA, in Tutbury, U.K. (Photographer: Simon Dawson/Bloomberg)

Motilal Oswal: Nestle India - Resumption Of Double-Digit Sales Growth Is Encouraging  

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Motilal Oswal Report

After a blip in Q2 CY20 (led by supply-chain issues), the company resumed double-digit sales growth in Q3 CY20 – which appears likely to sustain given the continued benefits of an in-home consumption boost.

Lower milk, wheat, and sugar costs also led to sequential gross margin improvement.

Consequently, Ebitda also grew in double-digits, a first after seven quarters.

The company also stated in the press release that double-digit growth was seen in the Noodles, Coffee, and Chocolates categories. Chocolates, being a discretionary product category, had a blip in earlier quarters.

Click on the attachment to read the full report:

Motilal Oswal Nestle India Q3CY20 Result Update.pdf


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