- Despite the ongoing consumption slowdown, Nestle has been consistently growing significantly ahead of other FMCG companies.
- Noodles and chocolates segments, which constitute 65% of volumes, are growing double digits. Noodles is still in a comeback phase, four years after facing issues related to food safety, while Nestle is gaining market share in chocolates through innovations and distribution expansion.
- New category launches have seen mixed response, with ready-to-drink coffee and Ceregrow seeing strong response, while response for breakfast cereals and Nangrow has been weak.
- Nestle is also in the process of launching 'Milo' nationally, and this is an important initiative given the large category size.
Nestle's gross margin has fallen in CY19 due to very high inflation in milk prices. The company is now hiking price to mitigate the impact.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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