Nestle's Nine-Month Organic Sales Growth Missed Expectations--Update
October 19 2023 - 2:32AM
Dow Jones News
By Giulia Petroni
Nestle posted a lower-than-expected organic sales growth in the
first nine months of the year and confirmed its outlook.
The Swiss food and beverage giant said sales stood at 68.83
billion Swiss francs ($76.57 billion) in the period from CHF69.13
billion a year earlier. Sales grew 7.8% organically, missing a
company-compiled consensus estimate of 8.1%.
Organic growth was driven by pricing at 8.4%, while real
internal growth--the sum of volume and mix--came in line with
expectations at minus 0.6%.
"Growth was driven by pricing as we continued to navigate
historic inflation levels. The recovery of our volume and mix is
underway," Chief Executive Mark Schneider said.
Nestle said it expects real internal growth to turn positive in
the second half.
The company confirmed its full-year guidance for organic sales
growth of between 7% and 8%, and underlying trading operating
profit margin between 17% and 17.5%. Underlying earnings per share
in constant currency are expected to increase between 6% and
10%.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
October 19, 2023 02:17 ET (06:17 GMT)
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