Nestle India could sustain sales growth outperformance in coming quarters

Near-term margins, however, may remain under pressure

Powered by double-digit growth across segments, the Indian subsidiary of the world’s largest food and beverage maker, Nestle India, posted a strong revenue performance in the September quarter for the 2022-23 financial year (Q2FY23). Sales growth for the company, which owns brands such as Nescafe, Maggi, Milkmaid, Sunrise, and KitKat among others, was up 18 per cent year-on-year (YoY), led by a rise in volumes, product mix and realisations.

Edelweiss Research estimates that volumes would have grown by 8 per cent while a price hike of 10 per cent reflects strong pricing power in a quarter of hyperinflation.

What aided