Nestle India - Encouraging Volume Growth Trends; Cost Inflation A Key Monitorable: Motilal Oswal

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.Nestle India Ltd. held an analyst call to provide a business update. Here are the key takeaways:Volume growth trends for all three quarters reported this year were encouraging. Nestle's volume and mix growth was 9.1%/13%/8.9% in 1Q/2Q/3Q CY21 (on 10.2%/13.7%/10.1% domestic sales growth). Volume growth was not disclosed as part of the company’s quarterly results. With this, the trend of positive volume led-topline growth seen in recent years continued.Management commentary on volume-led, double-digit sales growth has remained unchanged since Suresh Narayanan took over as CEO six years ago, and was reiterated during the analyst meet. In view of the $40-50 billion opportunity in the Indian packaged foods, the commitment is encouraging.Total reach and rural expansion is also encouraging. From a total reach of 4.5 million outlets before the ‘Maggi crisis’, Nestle's reach saw a sharp reduction only to gradually return to the earlier levels. From this point, the company went on to increase its total reach in the last two years and currently reaches 4.9 million outlets. Nestle now covers nearly 100,000 villages from 52,000 in CY18 with a target to reach 120,000 villages by CY24. Rurban (semi-urban and rural) sales are now evidently growing faster than overall sales.For more key takeaways read the report..Click on the attachment to read the full report:.DISCLAIMERThis 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 author entity 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.

Nestle India - Encouraging Volume Growth Trends; Cost Inflation A Key Monitorable: Motilal Oswal

Nestle India - Encouraging Volume Growth Trends; Cost Inflation A Key Monitorable: Motilal Oswal

Choose a plan