Nestlé India (NESTLEIND) Q4 2019 earnings summary

Executive summary

• FY 2019 reported sales grew 9.6%; domestic sales rose 10.9%, led by volume and product mix, while exports declined 9.9%.

• Profit from operations reached ₹25,862.5 million, with sustained operating margin of 21.0%; profit after tax was ₹19,695.5 million.

• Strong operating cash generation supported a ₹342 per-share total dividend, including a one-time ₹180 special interim dividend from accumulated profits.

Financial highlights

• Sales of products were ₹122,952.7 million versus ₹112,162.3 million in 2018; revenue from operations was ₹123,689.0 million versus ₹112,922.7 million.

• Profit from operations rose to ₹25,862.5 million from ₹23,508.6 million; profit after tax increased to ₹19,695.5 million from ₹16,069.3 million.

• Basic and diluted EPS was ₹204.28 versus ₹166.67; 2019 PAT benefited from lower tax rates effective from 1 April 2019.

• Net cash generated from operating activities was ₹22,336.7 million versus ₹20,524.5 million; capital expenditure was ₹1,522 million versus ₹1,628 million.

Outlook and guidance

• Priorities include continued product innovation and renovation, deeper rural and digital distribution, e-commerce growth, and process simplification to support profitable growth.

• Construction began on a dedicated MAGGI factory in Sanand, Gujarat; initial investment of ₹700 crore over two years and employment generation of around 400 people are planned.

• 2020 factory proposals include cleaner fuel, production efficiency, additional solar power purchase agreements, and expanded wastewater recycling.