Nestle: Resilient margins amid rising cost pressure\, higher base

Nestle: Resilient margins amid rising cost pressure, higher base

While long-term growth prospects remain intact due to likely lower margin gains ahead, analysts have cut earnings estimates by 2-3 per cent

Shreepad S Aute 

Despite a miss on March 2019 quarter (Q1) numbers, the Nestle stock was in demand on Wednesday. While positive management commentary on demand helped, the Street was also a bit surprised with the operating performance, given that many FMCG companies are sacrificing margins for volumes.

The company follows the Jan-Dec accounting period, hence March quarter is Q1. Nestle’s Q1 top line and net profit grew by 9 per cent each year-on-year to Rs 2,982.4 crore and Rs 463.3 crore, respectively, a tad lower than analysts’ estimates of Rs 3,055 crore and Rs 471 crore. The growth was ...

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First Published: Wed, May 15 2019. 17:41 IST