Financials
Nestle India’s marketing budget Rs 450 crore for FY-2014?
BENGALURU: One of the biggest spenders on advertisement and sales promotion in India is nutrition, health and wellness company Nestle India Limited (Nestle). The company which owns brands such as Nestle, Maggi, Everday, Barone, Munch, Kitkat, Milkybar, Polo, Alpino among others is expected to spend in excess of Rs 400 crore towards advertising and sales promotion (ASP) during the current calendar year that ends on 31 December 2014 (FY-2014).
Notes: 100,00,000 = 100 Lakhs = 10 million = 1 crore.
Let us look at the company’s numbers over the last ten years starting FY-2004 until FY-2013.
As per Figure 1 below, Nestle’s total revenue from operations (TIO) has had a compounded annual growth rate (CAGR) of 16.93 per cent from Rs 2227.57 crore in FY-2004 to Rs 9109.05 crore in FY-2013. Its ASP has grown by 14.04 per cent CAGR from Rs 121.26 crore (5.4 per cent of TIO) to Rs 395.48 crore (4.3 per cent of TIO) during the same period. Using 14.04 per cent ASP growth as a yardstick, the company is expected to spend around Rs 450 crore in FY-2014 towards ASP.
Background: Over the last 10 years, the company’s ASP has always increased in absolute rupees with an average y-o-y growth of 14.4 per cent. However, ASP in 2004 was 10.9 per cent lower than the ASP in FY-2003, which was 9.7 per cent lower than the ASP in FY-2002, which in turn was lower by 3.0 per cent as compared to the ASP in FY-2001.
If Nestle’s TIO rows at 16.93 per cent, it would be reach around Rs 10,640 crores for FY-2014. Assuming ASP as 4.3 per cent of TIO, Nestle should spend around Rs 460 crore towards marketing. Nestle’s TIO in FY-2014 grew at 9.2 per cent as compared to the Rs 8334.53 crore in FY-2012. Assuming a growth of 9.2 per cent and ASP as 4.3 per cent of TIO, the corresponding numbers of TIO and ASP for FY-2014 are about Rs 9940 crore and Rs 432 crore.
While in absolute rupee terms the company’s ASP shows a linear increasing trend, in terms of percentage of TIO, the linear trend is downwards. Across 10 years, the company’s average ASP is 4.82 per cent, of TIO, with a maximum of 5.5 per cent of TIO in FY-2005 and a minimum of 4.3 per cent of TIO in FY-2011, FY-2012 and FY-2013. Hence, company’s ASP across the last 3 years of 4.3 per cent is much below the 10 year par.
Disclaimer: Being a part of a multi-national group, the company is generally quite tight lipped about sharing financials unless it has to legally do so. Details about the company’s advertisement spends are not indicated even in the company’s annual reports – what you have is a combination of the advertisement and sales promotion spends declared as a single entry in the notes forming the part of the company’s annual financials. There is really no way that one could pin an exact number for these spends unless one has an inside track on the company’s marketing budgets. The projections in this report are pure conjecture based on the historical annual numbers revealed by the company in its annual reports. The author has no knowledge about Nestle’s strategy, past or present.
The numbers deduced in this report may be quite similar or way off the mark from the numbers that the company will reveal in its annual report for FY-2014 early next year. The company’s financial year ends on December 31, hence Q1-2014 and Q2-2014 means quarter ended March 31, 2014 and June 30, 2014 respectively in this report.
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Some more: For Q2-2014, the company reported y-o-y growth of 9.4 per cent in TIO at Rs 2431.97 crore from Rs 2222.71 in Q2-2013, and 4.8 per cent more than the Rs 2321.51 crore in the immediate trailing quarter. Nestle’s HY-2014 TIO at Rs 4753.48 crore was 6.2 per cent more than the Rs 4478.06 crore reported for HY-2013. Even if one were to go by the lowest figure of 4.8 per cent growth, TIO for FY-2014 would be Rs 9534.09 crore. Maintaining ASP of 4.3 per cent of TIO, the company’s marketing spend for FY-2014 works out to about Rs 414 crore.
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Given the fact that the company has been witnessing consistently lowering rate of growth since FY-2011 past few years, a marketing push would help Nestle reverse the trend, besides other strategies like launch of new products or revamping of old or existing products.
The company, in its Q2-2014 earnings release, says that it has recently launched Nestle Sweet Lassi, Nestle Buttermilk and Ayurvedic Herbs and Spices and Maggi Oat Noodles to its portfolio.
Based on the above numbers and launches, marketing spend in range of Rs 450 crore with a variation of + 10 per cent seems a reasonable number for FY-2014.
MUMBAI: It’s time to brief the markets: Page Industries is showing that even when regulations tighten, it can still keep its footing in the innerwear business. The Bengaluru-based apparel major has reported its financials for the quarter ended 31 December 2025, delivering a performance that remains steady and well put together.
The company’s top line showed plenty of elasticity this quarter. Revenue from operations stretched to Rs 1,38,675.71 lakhs, a healthy jump from the Rs 1,29,085.82 lakhs reported in the preceding quarter. Compared to the same period last year, which stood at Rs 1,31,305.10 lakhs, it’s clear the brand’s grip on the market isn’t loosening. Total income for the quarter, including other finance gains, reached a comfortable Rs 1,39,919.03 lakhs.
However, it wasn’t all smooth silk. The Government of India’s new unified Labour Codes, covering everything from wages to social security, officially kicked in on 21 November 2025. This regulatory shift forced Page Industries to account for a one-time “exceptional item” cost of Rs 3,500.42 lakhs to cover incremental employee benefits and related obligations. Despite this Rs 35-crore legislative snag, the underlying business remained robust. Profit before tax stood at Rs 25,625.35 lakhs after the exceptional hit, and without that one-off cost, the figure would have been a more muscular Rs 29,125.77 lakhs. Net profit for the quarter came in at Rs 18,953.64 lakhs.
Total expenses rose to Rs 1,10,793.26 lakhs, driven largely by raw material consumption of Rs 30,162.65 lakhs and employee benefits of Rs 23,310.66 lakhs. Even so, the company’s operational strength ensured the bottom line remained firmly stitched together.
For shareholders, the news is particularly “fitting.” The Board has declared a third interim dividend for 2025-26 of Rs 125 per equity share. The record date has been set for 11 February 2026, with the payment scheduled on or before 6 March 2026. This follows two previous interim dividends of Rs 150 and Rs 125 declared earlier in the financial year, reinforcing the company’s commitment to sharing the spoils of its success.
Looking at the nine-month stretch ending December 2025, Page Industries has amassed total income of Rs 4,04,090.59 lakhs, with total comprehensive income of Rs 58,231.49 lakhs. While the basic earnings per share for the quarter dipped slightly to Rs 169.93, compared to Rs 183.48 in the same quarter last year, the year-to-date EPS remains a solid Rs 524.57.
Auditors at S.R. Batliboi & Associates LLP have given the results a “limited review” thumbs up, reporting no material misstatements. It seems that, as far as Page Industries is concerned, the business remains as well-constructed as its famous Jockey briefs.
