Latest news with #NestleSA
Time of India
26-05-2025
- Business
- Time of India
Nestle SA acquires minority stake in Drools Pet Food
New Delhi: FMCG major Nestle SA , the parent company of Nestle India, has acquired a minority stake in Drools Pet Food, the latter said in a press release on Monday. 'This is a testament to the love and trust of millions of pet parents and our unwavering commitment to quality,' said Fahim Sultan , founder, Drools Pet Food. Founded in 2010, Drools operates six manufacturing units along with a 16 lakh square feet warehousing footprint. Its products are available across 40,000 retail outlets in India and are exported to over 22 countries. In June 2023, global private equity firm L Catterton invested USD 60 million in Drools for a minority stake.
Mint
26-05-2025
- Business
- Mint
Nestle India share price edges higher as LIC raises stake in the packaged foods company
Shares of Nestle India gained over 2 percent in intra-day trade on Monday, May 26, following an announcement from Life Insurance Corporation of India (LIC) regarding an increase in its stake in the packaged foods major. The stake hike, which pushed LIC's shareholding above the regulatory threshold of 5 percent, sparked renewed investor interest in the stock. The development comes amid broader news around Nestle's global investment plans and a mixed set of quarterly earnings. In a regulatory filing submitted under SEBI's Substantial Acquisition of Shares and Takeovers (SAST) Regulations, LIC disclosed that it had acquired 1,49,000 additional shares of Nestle India through a market purchase on May 23, 2025. With this transaction, LIC's total holding rose to 4,82,24,710 shares, representing 5.001 percent of the company's equity capital. Before this acquisition, LIC held 4,80,75,710 shares or 4.986 percent of the company's total equity. The crossing of the 5 percent ownership threshold triggered the mandatory disclosure requirement. Nestle India's total share capital stood unchanged at ₹ 96.41 crore. Following the announcement, Nestle India's stock rose as much as 2.1 percent during the trading session to hit a day's high of ₹ 2,464.50. Despite the uptick, the stock remains about 11 percent below its 52-week high of ₹ 2,777, which was recorded in September 2024. It had touched its 52-week low of ₹ 2,115 in March 2025. The FMCG stock has seen a volatile run over the past few months. After shedding 5.3 percent in February 2025, it bounced back with gains of 6.6 percent in January, 2.8 percent in March, and 6 percent in April. So far in May, it has added another 2.6 percent, though it remains down about 2 percent on a one-year basis. In a related corporate development, Nestle SA—the parent company of Nestle India—announced a minority investment in Drools Pet Food Private Limited, marking its first such move in India. While financial specifics of the deal were not disclosed, the transaction follows a $60 million funding round by Drools in 2023, which included backing from LVMH-supported private equity firm L Catterton. Drools will remain operationally independent post-investment, as per a statement released by the company. Nestle SA's entry into the Indian pet care segment comes at a time when the sector is witnessing rapid growth and increasing investor attention. Last week, Nestle India reported a standalone net profit of ₹ 885 crore for the quarter ended March 2025, registering a 5.2 percent year-on-year decline. However, revenue from operations rose 4.5 percent to ₹ 5,504 crore. Both top-line and bottom-line figures slightly beat market expectations. The company's EBITDA stood at ₹ 1,389 crore, reflecting a 3.9 percent growth from the same quarter last year. The EBITDA margin came in at 25.2 percent, slightly lower by 20 basis points year-on-year but still ahead of the 24.4 percent estimated by analysts. Margin pressures were primarily attributed to high cocoa prices. To reward shareholders, Nestle India also declared a final dividend of ₹ 10 per share for FY25. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
26-05-2025
- Business
- Mint
Nestle SA picks up minority stake in Indian pet food company Drools
New Delhi: Swiss food giant Nestle SA, the parent company of Nestle India, has made a minority investment in the Indian pet food company Drools Pet Food Private Limited. The financial details of this investment, Nestle SA's first in India, were not disclosed. Nestle SA owns popular brands such as Kit Kat and Milo. Drools will remain operationally independent after the investment, according to a statement released on Monday. The investment follows a $60-million fundraise by the company in 2023 from LVMH-backed private-equity firm L Catterton. The firm's investment in Drools amounted to 10% of the company's valuation at the time, making it one of the largest investments in the Indian pet care industry. Founded in 2010 by Fahim Sultan, Drools sells high-protein and prescription diets for pets. Its products are distributed across more than 40,000 retail outlets and exported to 22 countries. The company operates six manufacturing units and has a large warehousing footprint. It is also a key player in India's cat food market and a leading seller on e-commerce platforms including Amazon. Nestle has a large pet food business. In 2024 its pet care business reported 18.9 billion Swiss francs in sales, accounting for 20.7% of the company's total sales that year. It sells pet food for dogs and cats under brands such as Purina and Felix, according to the company's 2024 annual report. Purina Petcare was launched in India in 2017, albeit as a separate entity. In 2022 Nestle India acquired the pet food business Purina Petcare India for an estimated ₹ 125.3 crore to operate and scale the brand in India. Pet ownership in India surged during the pandemic as people were confined to their homes. The country now has an estimated 100 million pets, including 30 million in households. The pet food market, currently valued at $551 million, is projected to reach $1.8 billion in the next seven to eight years. The broader pet care sector has seen a rise in homegrown brands selling food, toys and accessories. Last August consumer products company Godrej Consumer Products Ltd (GCPL) announced plans to enter the pet food market in FY26 with the launch of its subsidiary Godrej Pet Care. GCPL will invest ₹ 500 crore in Godrej Pet Care over the next five years, partnering with Godrej Agrovet Ltd (GAVL) for manufacturing and R&D, the company said at the time. Other major pet food sellers include Mars Pet Nutrition, the maker of Pedigree and Royal Canin, and Nestle India. Anjana Sasidharan, partner and head of India at L Catterton, said, 'Drools has achieved significant growth since we invested in the company two years ago, through high-quality in-market agility and execution, and a range of operational initiatives we have been working on with its management team to create value. We are thrilled that Nestle, which has such a renowned position in the global pet care and consumer brands space, joins as a minority partner.' Fahim Sultan, founder of Drools Pet Food, said, 'This is a testament to the love and trust of millions of pet parents and to our unwavering commitment to quality… Backed by a strong focus on science-based nutrition, Drools continues to drive innovation and build meaningful engagement with the evolving demographic of Indian pet parents, positioning itself at the forefront of the country's pet care industry.'
Business of Fashion
22-05-2025
- Business
- Business of Fashion
LVMH Relinquishes Place Among Europe's Top Five Biggest Stocks
LVMH lost its place among Europe's top five listed companies as the luxury-goods maker endures its worst year-to-date slide since the 2008 financial crisis. The French company's shares fell about 3 percent on Thursday, taking their decline for this year to 25 percent. Its market value of about €239 billion ($270 billion) slipped below that of Swiss packaged-foods maker Nestle SA. Like most luxury companies, LVMH is being weighed down by demand worries in China and concerns that Donald Trump's tariffs will weigh on consumer spending in the US. The company has been putting out cautious signals on second-quarter trends, according to people familiar with the matter. 'For shares to reprice we'd need to return to some growth in the industry and/or some relative outperformance versus peers,' Morningstar analyst Jelena Sokolova said. 'I think both are more likely than not over the medium-term but I'm not sure those will happen this year.' ADVERTISEMENT It's been a gradual retreat for a stock that claimed a spot in the world's top 10 as recently as 2023, and once rivalled Facebook-owner Meta Platforms Inc. in terms of size. Investors fret that a recovery is looking elusive. Barclays Plc analyst Carole Madjo recently downgraded LVMH to equal-weight, saying she doesn't expect the firm's key fashion and leather-goods division to return to growth this year. 'On the back of the incremental headwinds facing the sector, especially in the US, we think the sector's earnings recovery story could be delayed,' Madjo said in a note. By Kit Rees and Julien Ponthus Learn more: LVMH Said to Signal Continued Weakness on China Woes The French luxury behemoth is warning investors and analysts that demand remains soft this quarter amid lacklustre consumer confidence, particularly in China, sources told Bloomberg.
Yahoo
21-05-2025
- Business
- Yahoo
Is Nestle (NSRGY) Outperforming Other Consumer Staples Stocks This Year?
The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Nestle SA (NSRGY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Nestle SA is one of 178 companies in the Consumer Staples group. The Consumer Staples group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Nestle SA is currently sporting a Zacks Rank of #2 (Buy). Over the past three months, the Zacks Consensus Estimate for NSRGY's full-year earnings has moved 3.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the latest available data, NSRGY has gained about 29.9% so far this year. Meanwhile, the Consumer Staples sector has returned an average of 6.7% on a year-to-date basis. This shows that Nestle SA is outperforming its peers so far this year. Another stock in the Consumer Staples sector, Imperial Tobacco Group PLC (IMBBY), has outperformed the sector so far this year. The stock's year-to-date return is 18.1%. Over the past three months, Imperial Tobacco Group PLC's consensus EPS estimate for the current year has increased 1%. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Nestle SA belongs to the Consumer Products - Staples industry, a group that includes 38 individual companies and currently sits at #160 in the Zacks Industry Rank. Stocks in this group have gained about 1.6% so far this year, so NSRGY is performing better this group in terms of year-to-date returns. Imperial Tobacco Group PLC, however, belongs to the Tobacco industry. Currently, this 6-stock industry is ranked #21. The industry has moved +33.8% so far this year. Investors interested in the Consumer Staples sector may want to keep a close eye on Nestle SA and Imperial Tobacco Group PLC as they attempt to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nestle SA (NSRGY) : Free Stock Analysis Report Imperial Tobacco Group PLC (IMBBY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
