NSRGY Nestle SA (PK)

By Giulia Petroni

Nestle SA on Thursday said that first-half profit fell despite sales rising, and raised its organic sales growth outlook for the full year.

The Swiss food-and-beverage giant said net profit for the period was 5.25 billion Swiss francs ($5.46 billion) compared with CHF5.95 billion the year-earlier period, as it was hurt by higher impairments and taxes.

Sales came in at CHF45.58 billion from CHF41.76 billion the prior year. Organic growth was 8.1%, with Purina PetCare as the largest contributor.

Real internal growth for the period was 1.7%, while pricing was at 6.5% to reflect significant cost inflation, the company said.

"We limited the impact of unprecedented inflationary pressures and supply chain constraints on our margin development through disciplined cost control and operational efficiencies," Chief Executive Officer Mark Schneider said.

Nestle said it expects organic sales growth between 7% and 8% from previously 5% in the full year. The underlying trading operating profit margin is now expected around 17%, from a previous forecast of between 17% and 17.5%.

The company confirmed it expects underlying earnings per share in constant currency and capital efficiency to increase.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

July 28, 2022 01:58 ET (05:58 GMT)

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