India growth strong in mid single-digits: Nestle SA

New Delhi: Swiss packaged foods company Nestle said on Wednesday its India unit reported strong mid single-digit growth, with good momentum for its brands Maggi noodles, Nescafe coffee and KitKat chocolate.

“Out of home consumption which is 5% of Nestle’s sales was severely impacted; we expect gradual recovery in out of home consumption as unlock keeps happening,” said Edelweiss Securities VP Abneesh Roy.

Globally, the packaged foods company raised its guidance for organic sales growth to around 3% for the year after posting better-than-expected growth of 4.9% for the quarter driven by strong demand for pet food and health products.

“Demand for foods and drinks consumed at home remained strong during the pandemic, while sales of products destined to out-of-home venues struggled in the third quarter,” the company said in a statement.

For the first nine months of the year, Nestle SA’s organic sales grew by 3.5 per cent. Nestle India is scheduled to announce earnings on Friday. While demand in out-of-home channels declined sharply in the peak lockdown months, in-home consumption of packaged foods witnessed record surge as consumers stayed indoors and malls and restaurants remained shut.


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