Nestle India - FMCG Play

It is interesting to see Nestle’s growth and focus on Confectionery segment.

The market share (value) for the past years: (couldn’t compare previously as they reported separately under “White & Wafers” and “Chocolates”)
H1 2018 - 61.1%
CY2018 - 61.9%
H1 2019 - 63.4%

Saw this at local supermarket:


Good shelf space

IMG_5876
Available in bigger SKUs

Till H119, confectionery grew at 22% and I guess this growth should sustain going forward.

Dividends
A good portion of a stock return also comes from dividends apart from capital gains, particularly so for FMCG companies.

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Dividends grew at a CAGR of about 17% (12.41% excluding FY19 special dividend). Market Cap grew at a CAGR of 19.3%. The dividend reinvested CAGR should be even good. :smiley: These returns are that of the past 18 years.

Disc: I own Nestle India.

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