The KitKat and Nescafé maker reported strong double-digit growth in its out-of-home business for FY25, helping India emerge as the second-largest market for this vertical by revenue in the Asia, Oceania, and Africa zone.
Nestle is well placed in various categories it is present; with focus on both urban and rural markets, growth is likely to pick up going forward
Cost inflation hurt the world’s biggest food group less than expected in the second quarter and price increases boosted first-half organic sales growth.
The current session of Parliament will take up the repeal of the Coffee Act of 1942, which was enacted in the middle of World War II, ostensibly to safeguard the industry from its effects.
The Swiss food giant on Thursday cut its outlook for the year, saying it now expected its full-year sales to rise by 3.5 percent after posting an increase of 3.3 percent for the first nine months. It previously said it expected full-year organic sales to rise by around 4.2 percent.
The FMCG major has said that Q1 results were impacted by Maggi Noodles Issue in 2015.
Analysts will keep a keen watch on pick up in Maggi volumes in Q1CY16, pricing outlook in milk and nutrition products, quantum of price cuts to ramp up volumes and impact of Nepal blockade on exports.
Analysts are negative on the stock over health scare and is concerned that the negative sentiment may spill over to other brands of the company. Maggi noodles contribute around 20-25 percent to its revenue in India.
Nestle India's shares fell over 3% on Thursday as investors gave a thumbs down to the dairy and food company's first quarter results.
Nestle says India remains an important and attractive market and as it expands its India footprint, the focus will be on coffee, dairy & confectionary and noodles, reports CNBC-TV18's Sunanda Jayaseelan.
Consumers in India already paying more for many essential commodities now need to pay more for their favourite cup of coffee.
The world's biggest food group Nestle raised its full-year outlook after strong demand for its Maggi and Nescafe brands in emerging markets helped it post a forecast-beating 7.5% rise in underlying first-half sales.