Nestle India: Great but Wait

研报英文原文证据摘录

Nestle India: Great but Wait

ids growth was driven periods ending March-2025 and so on. This is

due to a shift in reporting year from Dec-2023 to

by sharper urban engagement, rural expansion & innovations. Milk products & nutrition also March-2024

saw a broad-based growth with EVERYDAY returned to positive momentum in priority markets.

Pet food continued strong DD growth. NESPRESSO entered Bangalore in 1Q.

Distribution: All business channels grew in D/D. E-comm channel (incl. Q/C) continued

momentum, driven by improved availability, platform-specific packs, media investments &

festive activations. GT also delivered D/D growth across towns, with rural markets growing

faster; rural distribution touchpoints expanded in 1Q via tech-led interventions. Organised trade

saw D/D growth across key categories; growth was led by customer activations, improved in-

store execution, improved visibility & store expansion. OOH saw strong customer acquisition,

aided by innovation and premiumisation across categories. Export business grew by c36% YoY

despite ongoing geopolitical headwinds.

Input cost outlook: Coffee prices are expected to remain soft, supported by higher output

from Brazil/Vietnam although near-term volatility may persist. Cocoa & sugar prices remain

under pressure due to erratic rainfall & lower crop estimates (El Niño a risk to the next crop).

Edible oil prices are elevated but stable. Wheat & milk are expected to remain range-bound,

while protein complex (incl. dairy-based proteins) continues to face inflationary pressure due

to higher demand.

Hold Stays: We increase our FY27-29e EPS estimates by 2-6% and retain HOLD with revised

PT of Rs1,425.

FY (Dec) 2026A 2027E 2028E 2029E Vivek Maheshwari * | Equity Analyst

91 22 4224 6135 | vmaheshwari@jefferies.com

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