Nestle's Growth Prospects Provide Sweet Relief -- Earnings Review
February 14 2019 - 5:08AM
Dow Jones News
By Anthony Shevlin
Nestle SA (NESN.EB) reported its 2018 earnings on Thursday.
Here's what you need to know:
PROFIT: Net profit for the year was 10.1 billion Swiss francs
($10.03 billion), compared with CHF7.20 billion the previous year,
against analysts' expectations of CHF11.27 billion. Nestle said its
profit was boosted by one-offs mainly relating to disposals.
SALES: Nestle's sales for the year rose 2.1% to CHF91.44 billion
and organic sales growth was 3%, fully in line with guidance, the
company said. Analysts had expected sales of CHF91.40 billion and
organic sales growth of 3%. This is a stark improvement on the 2.4%
organic growth that the company posted in 2017, its slowest since
the mid-1990s.
WHAT WE WATCHED:
-PORTFOLIO CHANGES: Nestle once again announced plans to
streamline its vast portfolio by looking at strategic options for
its Herta charcuterie business, which generates around CHF680
million in sales. Analysts at Citi say the move is encouraging and
supports the case that the group "could unlock significant value
via the cleanup of its tail."
-ORGANIC GROWTH OUTLOOK: Nestle's recovery from the nadir of
2017 seems to be well on track, and the company expects continued
improvement in organic sales growth for the year ahead.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com;
@anthony_shevlin
(END) Dow Jones Newswires
February 14, 2019 04:53 ET (09:53 GMT)
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