Nestlé India (NESTLEIND) Q4 2018 earnings summary

Executive summary

• FY18 sales were ₹112,162.3m, up 10.7% reported; growth was volume-led and broad-based, while GST changes limit year-over-year sales comparability.

• Profit from operations reached ₹23,508.6m and PAT ₹16,069.3m; EPS was ₹166.67.

Financial highlights

• Sales of products rose to ₹112,162.3m from ₹101,351.1m; domestic sales were ₹105,075.4m and exports ₹7,086.9m.

• PAT was ₹16,069.3m versus ₹12,251.9m; total comprehensive income was ₹15,665.2m versus ₹11,362.1m.

• Other income increased to ₹2,589.2m from ₹1,769.2m, primarily on higher average liquidity and yields.

• Operating cash flow was ₹20,524.5m versus ₹18,177.9m; cash and current investments at year-end totaled ₹35,239.0m.

Outlook and guidance

• FY19 priorities include accelerating innovation and renovation, adapting products to regional preferences, and pursuing volume-led growth through a regional-cluster approach.

• Consumer demand and rural markets were expected to support growth; e-commerce, premium offerings and health-and-wellness products were identified as opportunities.

• Outlook remained exposed to volatile crude prices and rupee weakness; no numerical financial guidance was stated.