Nestle Q4 Results Preview: Maggi maker’s profit likely to surge 59%; margin may shrink

Nestle India — the maker of Maggi instant noodles — is likely to report a jump of 59 per cent in net profit to Rs 617 crore for the quarter ended December 2022 compared with the corresponding period a year ago, according to Zee Business research. The company is estimated to see strong growth momentum in the quarter aided by price hikes and distribution expansion.

The FMCG major will report its quarterly financial results on Thursday, February 16.

Investors will closely look out for the management's remarks on demand and input costs.

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The company's revenue is estimated to grow 16 per cent to Rs 4,341 crore compared with the year-ago period, according to the research.

The analysts peg the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs 936 crore for the three-month period, as against Rs 866 crore for the quarter ended December 2021.

Nestle India's sales volumes are expected to rise 4.5 per cent in the quarter ended December, with a strong performance in the rural market and the packaged foods segment.

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The company is likely to face margin pressure thanks to material costs. According to Zee Business research, Nestle's margin — a key measure of profitability — is estimated to contract by 170 basis points on a year-on-year basis to 21.5 per cent.

Nestle shares have risen six per cent in the past one year, a period in which the Nifty50 basket gained four per cent.