Nestle Q1 preview: Nescafe maker to likely report 16% growth in PAT; margins seen to climb 200 bps

The FMCG major Nestle is slated to report its Q1FY25 earnings later today. Zee Business research desk citing growth in volume as well as both domestic business and exports of 10 per cent and 20 per cent, respectively, expects the company’s consolidated PAT to climb 16 per cent on year to Rs 809 crore in the June quarter.Volume at the MNC is seen to log 4-5 per cent growth as estimated by the desk. Revenue at the company is also seen climbing 4 per cent during the reporting quarter to Rs 4,840 crore as against Rs 4,659 crore in the same quarter last year. EBITDA or the profitability metric is seen expanding by 15 per cent on year to Rs 1,210 crore as against Rs 1,056 crore in the same quarter last year. The desk estimates the company to benefit on the back of expansion in its distribution focus. Furthermore, the company is also seen to be a beneficiary of the increasing out-of-home consumption 

The gross margin at the company is estimated to inch higher and the EBITDA margin is expected to log 200 bps growth on year and come in at 25 per cent versus 23 per cent in the same quarter last year.  

Key monitorables 

The price trend of coffee, cocoa, milk prices will be on radar coupled with the demand trend.

Nestle's latest news

At the start of July, the company's members at its AGM held on July 8, 2024 approved the ordinary resolution to continue the payment of general licence fees (royalty) at the existing rate of 4.5 per cent with 99.54 per cent of valid votes in favour and 0.46 per cent against it, Nestle India said in a regulatory filing.

Nestle's share price

The stock in the last one year has scaled just 12 per cent as against the Nifty FMCG index that has gained 19 per cent during the same timeframe. Last ahead of its results later today, the stock traded with marginal gains at Rs 2,545.6, up 0.17 per cent.