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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


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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