Fast-moving consumer goods (FMCG) company Nestle is set to announce its earnings for the second quarter today. The Street is expecting good numbers -- 7.5 percent growth in its overall business, 9 percent growth is expected in EBITDA and a near 18 percent growth is expected in the company’s net profit.
Here are the key expectations:Q2CY20 (YoY)
- Growth in revenue seen at 7.5% at Rs 3,225 cr vs Rs 3,000.9 cr
- Growth in EBITDA seen at 9.3% at Rs 773 cr vs Rs 707.3 cr
- Margin growth seen at 24% vs 23.6%
- Profit after tax seen growing by 18.8% at Rs 520 cr vs Rs 437.8 cr
What To Watch Out For
-Co was relatively late in fixing supply chain issues during the lockdown
-Relative portfolio strength to aid revenue growth this quarter
-Domestic revenue to grow between 8-10%
-Co has delivered 12 straight quarters of double-digit growth in India biz
-Biz during the quarter to be led by prepared dishes and cooking aids, coffee, etc.
-Benign milk prices and operating leverage to support margins