Nestle India Stocks Surge 5.5% Following Q4 Earnings Release

Nestle India Shares Rally 5.5% After Strong Q4 Performance

Nestle India shares surged 5.5% on April 21 to become the top Nifty gainer, driven by the company's impressive March quarter results. The stock was the top performer on the Nifty FMCG index, which rose 1.5%. At 2:50 pm on April 21, Nestle India shares traded 5.75% higher at Rs 1,350.3 apiece.

The company's strong Q4 performance can be attributed to several factors, including a 26% increase in quarterly profit, fueled by robust demand for packaged foods such as KitKat chocolates and Maggi instant noodles. Nestle India's revenue during the March quarter grew 23% to Rs 6,748 crore, marking the company's highest-ever domestic sales.

Key Highlights of Nestle India's Q4 Performance

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The Indian unit of Swiss food major Nestle attributed its strong Q4 performance to double-digit volume growth, driven by a 50% increase in advertising spends and a healthy EBITDA margin of 26.3%. The company's confectionery product group reported high double-digit growth, underpinned by strong underlying transaction growth across its powerhouse brands.

Nestle India's Powdered and Liquid Beverages product group achieved another year of high double-digit growth, driven by increased coffee penetration, accelerated premiumisation, and deeper category relevance across consumer segments. The Pet food business also reported high double-digit growth, driven by a strong innovation pipeline to expand penetration and trials, wider distribution, and a sharper focus on building deeper bonds between pets and pet parents.

The company expects lower raw material costs, with coffee prices trending lower due to a favourable crop in Vietnam and the forthcoming crop in Brazil. Cocoa prices remain subdued, reflecting improved supply and moderated demand. Sugar prices remain stable, while edible oil prices are firm and have moved higher in line with global crude oil prices. Wheat prices have been affected by unseasonal rains in April, resulting in a delayed harvest and lower quantity and quality.

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