Companies

India posted strong mid single-digit growth: Nestle

Meenakshi Verma Ambwani New Delhi | Updated on October 21, 2020 Published on October 21, 2020

Swiss packaged-food major Nestle on Wednesday said that its India unit reported a strong mid single-digit growth in the July-September period, aided by strong growth momentum witnessed by some of its key brands.

“South Asia continued to perform well. India posted strong mid single-digit growth, with good momentum in Maggi, Nescafé and KitKat,” the company said, in its global earnings release for nine-months and the third quarter of the year.

On an earnings call with analysts on Wednesday, Francois-Xavier Roger, Chief Financial Officer, Nestle S.A said: “Including China, emerging markets reported mid single-digit growth with strong performances in Brazil, the Philippines, Russia and India. We remain positive in emerging markets as key growth platforms for years to come.”

Overall for the nine-month period, Nestle S.A. recorded organic sales growth of 3.5 per cent , which was supported by continued strong momentum in the Americas, Purina PetCare and Nestle Health Science, the company said in its statement.

 “Retail sales accelerated materially, reflecting continued elevated demand for at-home consumption. Growth in out-of-home channels remained significantly negative, with sales declines moderating in the third quarter,” the company added.

Nestle India is set to announce its third quarter earnings on Friday. Abneesh Roy, Senior Vice-President, Research, Edelweiss Securities said: “Out-of-home consumption which is 5 per cent of Nestle India’s sales was severely impacted. We expect gradual recovery in out-of-home consumption as unlock keeps happening.”

 He added that the company also has higher exposure to modern trade channels which was also adversely impacted due to the pandemic but is now expected to gradually revive.

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Published on October 21, 2020
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