Nestle Raises Organic-Growth Guidance After 9-Month Sales Rose -- Update
October 20 2021 - 2:37AM
Dow Jones News
By Giulia Petroni
Nestle SA said Wednesday that sales rose in the first nine
months of the year and raised its full-year guidance for organic
sales growth.
The Swiss food-and-beverage giant reported sales of 63.29
billion Swiss francs ($68.60 billion) in the period, up from
CHF61.91 billion in the previous year. Company-compiled consensus
had forecast the figure at CHF62.93 billion.
Organic sales growth was 7.6%, with real internal growth of 6%,
the company said. Pricing increased to 1.6%, accelerating to 2.1%
in the third quarter.
Nestle said growth was supported by continued momentum in retail
sales, a steady recovery in the out-of-home channels due to further
easing of restrictions, as well as increased pricing and
market-share gains.
Coffee was the largest contributor to growth in the period,
boosted by the Nescafe, Nespresso and Starbucks brands. Purina
PetCare and vegetarian and plant-based food recorded double-digit
growth.
Nestle said sales at Nestle Health Science also grew at a
double-digit rate, reflecting strong demand for vitamins and
supplements, while nutrition posted negative growth due to lower
birth rates worldwide and a sales decline in China.
Looking at the full year, the company said it now expects
organic sales growth between 6% and 7%, from previous guidance of
between 5% and 6%.
As previously announced, the underlying trading operating profit
margin is expected around 17.5%, reflecting delays between input
cost inflation and pricing, while underlying earnings per share at
constant currency and capital efficiency are expected to increase
during the year.
The mid-term outlook for continued moderate margin improvement
remains unchanged.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
October 20, 2021 02:22 ET (06:22 GMT)
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