Nestle Q1FY21 Results

Nestle Q1FY21 Shareholding Pattern

Nestle Fun Facts

Full Year 2019 Highlights

Quest for Double Digit Value Growth

Real Internal Growth (Volume & Mix)

About Nestle

Nestlé India Limited is the Indian subsidiary of Nestlé which is a Swiss multinational company. The company is headquartered in Gurgaon, Haryana. The company’s products include food, beverages, chocolate, and confectioneries.

The company was incorporated on 28 March 1959 and was promoted by Nestle Alimentana S.A. via a subsidiary, Nestle Holdings Ltd. As of 2020, the parent company Nestlé owns the majority of Nestlé India.

Market Leadership

An update – Ketchup category is #2.

All their brands

Continued focus on Innovation & Renovation

71 innovation since 2016

Building Enduring Relationships

Developing a new sourcing mindset for entry into organic food category

  • Organic grains from Rajasthan, Andhra Pradesh, and Karnataka
  • Natural, real, and toxin-free organic fruits
  • 20 member supplier development team – farm to factory
  • India Organic, Jaivik Bharat, and SGS certified products
  • Milk from Rajasthan from cows fed with 100% organic and farm-grown fodder

Committed to Make in India – 98% of what we sell is ‘Made in India’

Construction commenced for a dedicated MAGGI factory (Sanand, Gujarat)

Sustainability

10 Year Financial Highlights

Exports

  • In 2019, the exports of Company to South Asia (Nepal, Bhutan, Bangladesh, and Sri Lanka) registered a double-digit growth primarily driven by categories such as Milk Products, Instant Coffee, Instant Noodles, and Infant Nutrition.
  • The company’s brand continued to have a high level of trust. The United Kingdom registered high double-digit growth. Total exports, however, de-grew by 9.9% as a result of lower coffee exports to Turkey in 2019.
  • The balance of portfolio continued to grow because of a well-diversified mix of export markets.
  • With the focus on range extension and channel proliferation, brand MAGGI continued to grow amongst the Indian diaspora. The United States and Canada remained the biggest destination for culinary exports.
  • The company is striving to enhance distribution in key markets and explore new territories.
  • The Instant Tea exports registered another year of credible growth on the back of strong demand for its premium grades in the markets of East Asia.
  • The company’s endeavor in exploring new markets has delivered good results in the confectionery category with exports to Malaysia and Thailand in 2019.

Business Development

  • Cluster-based approach, that is powered by data and technology, the Company made deeper penetration into newer markets, unleashed growth potential, and created a transparent planning process.
  • Nestlé Business Excellence, by simplifying processes that reduce administrative cost by increasing the penetration of its shared services.
  • Further leveraged e-commerce, through targeted communication, range selling, consumer base sampling, which led to a growing contribution of e-commerce to domestic sales. In 2019, Company has continued to focus on its traditional trade and modern trade, to further strengthen its strategic priorities and build a more agile network of product delivery to its consumers.
  • The company continued to work towards reducing sodium, sugars, and saturated fats and adding healthful ingredients like whole grain, vegetables, and micro-nutrients to its foods and beverages making them more nutritious. The total micro-nutrient fortified servings sold in 2019 in India is equivalent to 6.7 billion serves, across several product lines.

Innovating and Renovating Prepared Dishes and Cooking Aids

  • MAGGI range of products. MAGGI Noodles, in the instant noodles category further strengthened its leadership position in 2019, through a strong double-digit volume growth
  • Renovating its portfolio with the launch of MAGGI Nutrilicious Atta Noodles made with a blend of 20 spices and herbs
  • Launched MAGGI Fusian Noodles, a range of Asian flavors inspired MAGGI Noodles, available in flavors such as Bangkok Sweet Chilli, Hong Kong Spicy Garlic, Singaporean Tangy Pepper.
  • MAGGI expanded its offering in the ready-to-eat segment with the launch of MAGGI Upma and MAGGI Poha,

Building Breakfast Cereals

The company’s breakfast cereals business under the NESPLUS brand retailed a range of products aiming to provide high-quality nutritious options to the Indian consumer. Each of these products is made with four grains: wheat, rice, oats, and the traditional Indian millet, jowar. The variants include – Koko, Choco – Burst Fillows, Strawberry-Burst Fillows, and Nutty Honey Granola as well as cereal bars. The products grew in modern trade and e-commerce, saw tremendous on-ground activation, with plans underway for innovation, renovation, and new launches.

Specific Portfolios

The Company expanded its presence in the Health Food Drinks category by bringing to India the world’s number 1 cocoa malt beverage MILO. Launched in powder form in select markets, MILO has gained a positive response from consumers and retailers. Also introduced Nestlé a+ Banglar Mishti Doi inspired by the regional delicacy of West Bengal. They continued to inspire enthusiasts to try their hand at baking desserts by offering recipe options with their trusted MILKMAID.

In its Healthcare Nutrition Business, marketed under the umbrella of Nestlé Health Science, your Company consolidated its portfolio and delivered growth.

The company also made an entry in the Weight Management Category with the launch of OPTIFAST, a first of its kind scientifically designed meal replacement diet for people with weight concerns. This is an example of benefits from the continuous access to, amongst other things, research and development

The company re-launched LACTOGEN 1 with L. reuteri (probiotics). In the specialized formula segment, Pre-NAN was relaunched with DHA (Docosahexaenoic Acid) and ARA (Arachidonic Acid) and for the first time manufactured in the Samalkha manufacturing factory of the Company.

Baby Foods Category, and in keeping with our line with the consumer trend towards traditional millets becoming the modern super grains, Company has launched the first-ever ‘Ragi’ variant under the brand CERELAC.

In line with the growing Organic food trend, Company launched a range of Organic Cereals under the CERELAC and CEREGROW brands. 

For two years, Company has been providing support to farms where organic practices are in place. The products are made from 100 percent organic ingredients and have the ‘India Organic’ and ‘Jaivik Bharat’ certification. The CEREGROW Branded organic cereals launch was supported with communication positioned on ‘CEREGROW ka Poshan, Organic ki Tasalli’.

Growing Coffee and Beverages Portfolio

NESCAFÉ continued its, premiumization journey with NESCAFÉ Gold and NESCAFÉ É, a smartphone-connected coffee-making mug, which is compatible with products from the NESCAFÉ portfolio, by reaching out to consumers seeking premium products across the country through stores as well as e-commerce.

More offerings in the Chocolate and Confectionery Portfolio

KITKAT accelerated its premiumization journey with the launch of the most indulgent variant KITKAT DESSERT DELIGHT Rich chocolate fudge. This will enable the brand to tap new opportunities in the gifting and sharing space.

Nestlé Professional — Out-of-Home

  • The company’s ‘Out of Home’ business extended its food portfolio by launching new products in the ‘Ready to eat’ and ‘Food Solutions’ segment. With the launch of MAGGI Poha and MAGGI Upma, in an ‘on the go’ format, your Company added Indian snacking options for the consumers targeting the transport and education channel.
  • New products like MAGGI Liquid Seasoning and MAGGI PROFESSIONAL Thai Curry Pastes (100% Vegetarian Red & Green Curry Pastes) were also launched as food solutions to strengthen presence in the Pan-Asian Restaurant segment.
  • The company also engaged with 200+ budding chefs from various reputed hotel management institutions through events like Young Culinary Talent, Chef Master Classes, and culinary contests.
  • Company strengthened engagement with 3000+ key opinion leaders.
  • The company under the umbrella of ONE (One Nestlé Experience) made a new beginning with the setting up of NESCAFÉ & MAGGI kiosks in various channels.
  • The company, through a franchise business model, operates in approximately 476 Kiosks that are visited by over 14.4 million consumers every year.

Balance Sheet

P&L

Cash Flow

The Cash flow from operations (CFO) increased from Rs 2052.45 Cr in FY19 to 2233.67 Cr. The Free Cash flow (FCF) increased from 1886.5 Cr in FY19 to Rs 2079.2 Cr.

Advertising

Nestle India spent 6.22% of its total sales on Ad Spends.

More Annual report takeaways here. Our complete media coverage here.

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