Nestle gains after good Q2 result

Nestle India gained 3.68% to Rs 11,848.2 at 9:19 IST on the BSE after net profit rose 10.8% to Rs 437.84 crore on 11.4% rise in net sales to Rs 2982.83 crore in Q2 June 2019 over Q2 June 2018.

The result was announced after market hours on Friday, 2 August 2019.

Meanwhile, the S&P BSE Sensex was down by 419.98 points or 1.13% to 36,663.3.

On the BSE, 381 shares were traded in the counter so far compared with average daily volumes of 2,861 shares in the past two weeks. The stock had hit a high of Rs 11,864.95 and a low of Rs 11,545. The stock hit a 52-week high of Rs 12,025.65 on 1 July 2019 and a 52-week low of Rs 9,080.10 on 11 October 2018.

Domestic sales increased by 13.1% in Q2 June 2019 largely driven by volume & mix and positively influenced by sales to CSD and sale of surplus fat. Export sales dropped by 13.9% in Q2 June 2019 primarily due to lower coffee exports to Turkey.

Suresh Narayanan, Chairman and Managing Director, Nestle India said environment continues to be challenging with headwinds in commodity prices and softer demand conditions.

The company announced that it will start construction of its ninth factory in India. The factory for 'Maggi Noodles' will involve an initial investment of nearly Rs 700 crore over the next two years is located in Gujarat.

The board has approved an interim dividend of Rs 23 per equity share and a special interim dividend of Rs 180 per share for the current financial year.

Nestle India is one the biggest players in FMCG segment and has a presence in milk & nutrition, beverages, prepared dishes & cooking aids and chocolate & confectionery segments. The company manufactures products under brand names, such as Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea.

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