Nestle India Q3 Review - Double-Digit Growth Momentum Continues: IDBI Capital

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IDBI Capital Report

Nestle India Ltd.'s Q3 CY21 result has been in-line with our estimates. Revenue continued double digit growth momentum on a high base of 10% YoY.

Organised trade recorded strong recovery with revenue growth at mid-twenties after a muted second quarter due to Covid-19 induced-lockdowns.

Revenue growth in both metros and small towns stood at high double digit.

Maggi noodles and Maggi Masala‐ae‐Magic posted healthy growth while Maggi sauces reported muted growth due to decreased in‐home consumption, high base and increased competitive intensity.

Milk products and nutrition (toddler range and milk made), confectionary (power brands; Kitkat, Munch, Milkybar) and beverage (Nescafe) grew at double digit.

Gross margin contracted for the first time after four consecutive expansions due to high input cost.

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