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.
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