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Volumes to drive Nestle's top line, but margin gains may not be easy

Input cost pressure and rise in promotional spends to limit operating profit margin expansion, say experts

Nestle
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The move will see the company competes with Kellogg’s and PepsiCo

Shreepad S Aute Mumbai
In 2018, Nestlé India — the third-largest fast-moving consumer goods company by market value — clocked a 13 per cent rise in net operating revenues, its highest in the last seven years, led by robust volumes. The double-digit revenue growth is likely to sustain in the medium term for Nestlé, which follows the January-December financial year. 

According to the analysts at Nirmal Bang, a positive consumption environment, coupled with the management’s focus on profitable growth led by volume, innovation, and cost management, will enable Nestlé to deliver above-average earnings growth in the medium term. However, this could pinch near-term profitability and

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First Published: Feb 26 2019 | 8:09 PM IST

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