Nestle India Ltd. share price target

Nestl's 4QCY18 nos show 4.8% decline in EBIDTA and 4.3% decline in PAT Change in Estimates | Target | Reco due to higher adspends on brand building and peaked out gross margins, we...

14 February 2018 Domestic sales grew by 12% YoY, driven by higher volumes. Export sales were flat YoY at INR1.9b due to lower exports to Bangladesh and the UAE. EBITDA however, shrank 360bp YoY to 21.2% due to a sharp increase in other expenses, largely on account of step-up in demand-generating activities, including on new products. PAT were up 12.8%, 23% and 27.5% YoY, respectively. Reported domestic sales grew 10.9% YoY, while exports increased 6.9% YoY. Gross margin expanded 260bp YoY to 59.4%, while the EBITDA margin improved 200bp YoY to 24.2%.

Nestle India Ltd Q3CY18 results Comment Revenue rose by 9.09% to Rs. 2921.99 Cr in Q3CY18 when compared to the previous quarter. Also, it grew by 16.85% when compared with Q3CY17.

Strong volume led domestic growth on the back of new product launches and product variants resulted in total sales growth of 16.9% in Q3CY18 to | 2939.4 crore. Domestic sales increased by 17.5%. Operating profit increased 22.8% to | 725.2 crore while margins saw an improvement of 118 bps to 24.7% mainly on the back of soft milk prices and sugar, resulting in 286 bps improvement in gross margins, partially offset by 150 bps increase in other expenses to sales...

26 October 2018 Domestic sales grew 17.5% YoY, while exports increased 7.9% YoY to INR1.7b. favorable commodity prices during the quarter. In its press release, NEST stated that it is now facing some headwinds from RM costs, crude-led inflation and currency depreciation. 150bp YoY to 24.6% of sales, led by higher marketing spends and an increase in fuel prices. During the quarter, NEST introduced Breakfast Cereals. Staff costs, however, declined 40bp YoY in the quarter. Other income grew 56% YoY to INR670m due to higher average liquidities and increased yields.

Nestle posted 14.5% YoY growth in domestic revenue across all its product categories in H1CY18 with a healthy volume growth of 9% YoY. Gross margins expanded by 460bps due to benign raw material prices. Higher other income (45% YoY rise) and lower depreciation charges (4% YoY/-1% QoQ) drove strong PAT growth. Recent entry into breakfast cereals and canned beverages will help leverage existing extensive distribution reach for a faster scale-up. Management stressed on innovation backed healthy products and cluster...

EBITDA has risen to 22.1% in H1CY18 from 16.2% in H1CY17, mainly sanjay.manyal@icicisecurities.com on account of 410 bps decline in raw material cost in addition to...

21 August 2018 New products/innovations contributed 3% of domestic sales in 1HCY18, as against 2.8% in 1HCY17 (2.6% in CY17). Of the 36-38 new products launched recently, around 25 have been retained. The rest did not scale up as expected, and thus, were either culled or pulled back to the drawing board. have not lived up to the expectations. The key reason was the difference between the intention of the product and the consumer perception. Nestle India Company v/s listed peers growth recovery post Maggi crisis. This was because the industry was more affected by GST destocking and the recovery from this was relatively fast. Volumes grew ~9% in 1HCY18, while adjusted value growth was 13.8% in the domestic business. NEST commands a market leadership in ~85% of its portfolio.

The Growth Story Continues: Nestle India's revenue grew by 12.3% YoY, led by volume growth across categories. The gross margins expanded by 456 bps on YoY basis mainly led by soft commodity prices and lower overhead costs due to cost efficiency programme.

Revenue decreased by 2.13% to Rs. 2678.57 Cr in Q2CY18 when compared to the previous quarter. Nestle India Ltd Q2CY18 results Comment