Nestlé India (NESTLEIND) Q4 2009 earnings summary

Executive summary

• FY09 net sales rose 18.6% YoY, with domestic sales up 20.4% on volume growth and better realizations; export sales declined 2.9%.

• Net profit increased 22.6% YoY; operating margin benefited from sales mix, realizations, energy savings and scale efficiencies, partly offset by higher advertising and actuarial losses.

Financial highlights

• Gross revenue was Rs 51,672 million versus Rs 43,581 million in FY08; net sales were Rs 51,294 million versus Rs 43,242 million.

• Net profit was Rs 6,550 million versus Rs 5,341 million; profit before tax was Rs 9,170 million versus Rs 7,728 million.

• Domestic sales reached Rs 48,938 million; exports were Rs 3,286 million, down 2.9% YoY.

• Operating cash flow was Rs 9,279 million; cash generated from operations was Rs 11,972 million.

Outlook and guidance

• FY10 began as planned; long-term business prospects remained positive despite an unsettled economic environment and higher input costs.

• Capacity expansion at existing and new sites was planned to sustain the higher growth trajectory; continued product innovation and affordable offerings were priorities.