Overview of finance statement of Nestle Company

1. Pimpri Chinchwad Education Trust’s
PIMPRI CHINCHWAD COLLEGE OF ENGINEERING
Nigdi Pune- 4110044
GUIDANCE BY : MRS. ASHWINI P. SHENOLKAR
Group Member:
120B1G104 TYMEB104 Jeet Saoji
120B1G105 TYMEB105 Shivraj Sapkal
120B1G097 TYMEB097 Hemangi Rajput
120B1G120 TYMEB120 Raghavan Tekade
120B1G136 TYMEB136 Gaurang Thakre
Department of Mechanical Engineering
SUBJECT : FINANCIAL MANAGEMENT – BHM6115

2. Nestlé India
Nestlé India Limited is the Indian
subsidiary of Nestlé which is a Swiss
multinational company. The company is
headquartered in Gurgaon, Haryana.
The company's products include food,
beverages, chocolate, and
confectioneries.

3. 1. Milk Products and Nutrition:
2. Prepared Dishes and Cooking Aids:
3. Chocolate and Confectionery:
4. Other Food and Beverages:

4. GROWTH
• Based on historical data, the milk products and nutrition segment has been
a consistent contributor to Nestle's revenue. This can be attributed to the
fact that Nestle has a strong brand presence in this segment, with products
like Nescafe and KitKat being popular among consumers.
• On the other hand, the confectionery segment has experienced some
fluctuations in revenue over the years. This can be attributed to factors
such as changes in consumer preferences, competition from other brands,
and regulatory changes.
• In recent years, Nestle has been focusing on diversifying its product
portfolio and expanding into new segments to mitigate the impact of such
fluctuations.
• It's important to note that revenue fluctuations in one segment can be
offset by growth in other segments. Overall, Nestle is a diversified company
with a broad range of products and brands, which allows it to weather
economic and market fluctuations.
3

5. Cost
1. Cost of Goods Sold: raw materials, labor, and manufacturing.
2. Marketing and Advertising Costs: advertising, public relations, and promotional
activities.
3. Research and Development Costs: developing new products, improving existing
products, and conducting market research.
4. General and Administrative Costs: associated with running the day-to-day
operations of Nestle, such as salaries, office rent, utilities.
5. Interest Expenses: borrowing money or raising capital .
6. Taxes: income tax, sales tax, and property tax.
7. Depreciation and Amortization: wear and tear of Nestle's long-term assets, such
as property, plant, and equipment.

6. Factor affecting the cost
Generally, the cost of raw materials is a critical factor that affects the
production cost of goods in all these segments, and it could be a reason for
an increase in costs historically.
For example, the Milk Products and Nutrition segment of Nestle uses
raw materials such as milk, coffee, tea, and cocoa, which can be subject to
price volatility based on factors such as supply and demand and weather
conditions.
Overall, raw material prices can impact the production cost of
goods in all these segments, and Nestle must manage these costs effectively
to maintain profitability.

7. 6
From the above chart we can see clear increment in the Nestle

8. Financial Calculations
• Gross margin =Gross profit / Total sales
=23905/167895
=14.23%
• Operating Profit margin = Operating profit / Total Sales
= 33659/167895
=20.04%
• Net margin = Net profit / Total Sales
=104867/167895
=62.46%
• Price / Earnings ratio = Market price per share / Earning per
share.
=19013/247.9
=76.69:1
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9. 11
CASH FLOW STATEMENT

10. 8
Cash flow from operating activities is a measure
of the cash generated or used by a company's core
business operations during a specific period.
It is an essential component of a company's cash
flow statement and is calculated by subtracting the
company's operating expenses from its operating
revenues.
Cash flow from operating activities is a measure
of a company's cash generated or used by its core
business operations and is a critical component of its
overall financial health
Cash flow from operating activity

11. Cash flow Investing activity
9
Cash flow from investing activities is a
measure of the cash generated or used by a
company's investments in long-term assets and
other investment activities during a specific period.
It is calculated by subtracting the
company's cash used in investing activities from
its cash generated from investing activities.
Cash flow from investing activities is a
measure of a company's cash generated or used
by its long-term investment activities and is a
critical component of its overall financial health.

12. Cash flow from Financing Activity
Cash flow from financing activities is a
measure of the cash generated or used by a
company's financing activities during a specific
period.
It is calculated by subtracting the company's cash
used in financing activities from its cash generated
from financing activities.
Cash flow from financing activities is a
measure of a company's cash generated or used by
its financing activities and is a critical component of
its overall financial health.
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13. Conclusion
From the above study,
We have concluded that, when analyzing a cash flow
statement, it is important to look at the overall net cash flow,
which is the difference between the cash inflows and outflows
for the period.
A positive net cash flow indicates that the company
generated more cash than it used during the period, which can
we say that positive sign for the company's financial health.
Additionally, it is seen that the trends in the company's
net cash flow over time. A company with consistently positive
net cash flow may be in a strong financial position.

14. THANK YOU
TYMEB104 Jeet Saoji
TYMEB105 Shivraj Sapkal
TYMEB097 Hemangi Rajput
TYMEB120 Raghavan Tekade
TYMEB136 Gaurang Thakre