Nestlé India (NESTLEIND) investor relations material

Growth strategy and market opportunities

• Achieved consistent revenue growth with a CAGR of 11.3% from 2021 to FY 25-26, reaching INR 231 billion, and double-digit volume growth at 10.7% in FY 25-26.

• Focus on volume-led growth, premiumization, and innovation to drive penetration, especially in underpenetrated categories like noodles, coffee, and confectionery.

• Distribution expansion quadrupled rural points and added over 500,000 retail outlets in five years, with rural coverage reaching 219,700 villages by FY 25-26.

• Premium portfolio contribution rose from 11% in 2021 to ~17% in FY 25-26, growing 500 basis points ahead of overall growth.

• E-commerce and premium channels doubled their contribution since 2021, supporting rapid innovation and targeted consumer engagement.

Financial performance and capital allocation

• Consistent double-digit value and accelerating volume growth, with recent quarters showing double-digit volume increases.

• Total shareholder return exceeded 15% in the last year, supported by disciplined capital deployment and margin management.

• Over INR 64 billion invested in capacity expansion over five years, with recent investments in new Maggi and Munch lines.

• Capital expenditure reached INR 47 billion for FY 24-26, with 41% capacity expansion since 2020.

• Advertising spend increased by 40%-50% YoY in recent quarters, with digital spends rising to 55%-60% of total ad spend by 2025 for better ROI.

Innovation, technology, and portfolio development

• Strong R&D capabilities, with a major research center in India, drive product innovation in both human and pet nutrition.

• Launches include Nescafé Ready-to-Drink, Vietnamese Latte, KitKat Delight, and Pro Plan for pets, with science-backed solutions.

• Technology adoption, including SAP S/4HANA, AI/ML, and digital tools, enhances supply chain, sales, and operational efficiency, unlocking 18,000 productive hours monthly.

• E-commerce and Q-commerce serve as launchpads for new products and premium offerings, supporting rapid scaling.

• Portfolio expansion leverages global brands and formats, with a focus on relevance and execution at the point of purchase.