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  

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

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

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.