Swiss food and drink company Nestle has reported a ‘mid-single-digit growth’ in the Indian market in the July-September quarter, helped by its popular brands Maggi, Nescafe and KitKat. Overall, the South Asian market has”continued to perform well”, Nestle said on Wednesday in its post earning statement. “India posted strong mid-single-digit growth, with good momentum in Maggi, Nescafe and KitKat .
Nestle said in the Q3 sales report for 2020. The Indian market was ranked at number 13 in terms of contribution to Nestle’s global revenue in 2019. Nestle’s South-East Asia market also maintained mid-single-digit growth. “Sales in the Philippines grew at a double-digit rate, with elevated consumer demand for Bear Brand, Milo and Maggi. Indonesia delivered high single-digit growth, led by Bear Brand, Dancow and Milo,” it said. Sub-Saharan Africa grew at a double-digit rate, with strong growth across most of the markets.
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Growth in Other countries
“Growth in Japan, South Korea and Oceania was slightly positive. Oceania reported strong growth across most product categories, particularly in coffee and confectionery. Japan saw a decline in sales, with some improvement in the third quarter. KitKat sales declined in Japan, impacted by a reduction of inbound tourists,” it said. Nestle has reported sales of 61,912 million CHF (Swiss Franc) for the nine months.
“Organic growth reached 3.5%, with RIG of 3.3%. Pricing contributed 0.2%. Organic growth improved to 4.9% in the third quarter,” the company said. It has also raised its guidance for 2020 organic sales growth.
“We expect full-year organic sales growth around 3% The underlying trading operating profit margin is expected to improve. Underlying earnings per share in constant currency and capital efficiency are expected to increase,” the company said. Nestle India Ltd. is scheduled to announce its result for the July-September quarter on Oct. 23, 2020.
Source : Bloomberg Quint