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Credit Report Analyses - Nestle
Credit Report Analyses - Nestle
MILK PRODUCTS
Milk products and nutrition has a GROSS SALES growth rate of 9.46% from FY 21
to FY 22. Gross sales and revenue YOY is expected to go up by 12.4% for FY 23 .
Though elevated milk prices have been adversely impacting gross margins, price
hikes and softening of other commodities (palm, wheat) is helping it minimise the
impact. We believe milk prices would remain high until at least November-2023,
which would aid pricing led revenue growth in CY23. We remain positive on nestle
given its distribution expansion, foray in newer products & pricing growth.
Milk product category registered double digit growth during the quarter led
by strong growth in Milkmaid. We believe elevated milk prices supported
pricing growth in this category
Milk product category registered double digit growth during the quarter led
by strong growth in Milkmaid. We believe elevated milk prices supported
pricing growth in this category
Contributes approximately 40.87% to Nestle's total sales, indicating the
significant role this category
plays in the company's revenue stream. The substantial contribution underscores
the importance of
milk products and nutrition within Nestle's product mix, reflecting consumer
reliance on these essential
items.
- Nestle offers a wide range of milk products including liquid milk, powdered milk,
and dairy-based
beverages. These products cater to varying consumer preferences and needs, such as
lactose-free
options, fortified milk with added vitamins and minerals, and specialty milk for
infants and toddlers.
BEVERAGES
The company launched new product ‘ThickenUp Clear’, a food and
beverage thickener from its Nestlé Health Science portfolio. ThickenUp
Clear can be used to help patients with swallowing difficulties especially in
oropharyngeal dysphagia.
Beverage segment witnessed healthy growth through market share gains in
Nescafe classic, Nescafe sunrise & Nescafe Gold. We believe high raw
material prices also led to pricing growth in this category
The beverages segment has a GROSS SALES growth rate of 19.2% from FY 21 to
FY 22. Gross sales and revenue YOY is expected to go up by 13.4 % for FY 23 .