NIFTY 50

Nestle Q2CY20 Earnings: Here's what to expect today

Updated : July 29, 2020 01:17 PM IST

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
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