Nestlé raises its organic growth outlook and cuts its margin forecast

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A logo is pictured on the Nestle research center at Vers-chez-les-Blanc in Lausanne, Switzerland August 20, 2020. REUTERS/Denis Balibouse/

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ZURICH, July 28 (Reuters) – Nestlé (NESN.S) on Thursday raised its forecast for full-year sales growth to 7-8% and slightly lowered its margin forecast after inflation in the costs did less harm than expected and price increases boosted organic sales growth. in the first half of 2022.

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At Nestlé, the world’s largest food group, net profit hit by one-off items including higher depreciations and taxes fell 11.7% to 5.2 billion Swiss francs (5.42 billion Swiss francs). dollars), the maker of KitKat chocolate bars and Maggi soups said in a statement, missing an average of 5.815 billion Swiss francs in a consensus compiled by the company.

The underlying trading operating profit margin fell to 16.9% in the first half of 2022, compared to 17.4% a year ago, slightly above the 16.7% expected.

In the second quarter, underlying or “organic” sales growth accelerated to 8.7%, compared to 7.6% in the first three months of the year, thanks in particular to price increases of 7 .7%, said Nestle.

Organic growth in the first half reached 8.1%, beating a forecast of 7.4% in the survey.

The Vevey-based company on Lake Geneva said it now expects organic sales growth of 7-8%, compared to around 5% previously, and an underlying trading operating margin of around 17, 0%, compared to previous guidance of a margin of between 17.0% and 17.5. % This year.

($1 = 0.9589 Swiss francs)

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Reporting by Silke Koltrowitz; Editing by Michael Shields

Our standards: The Thomson Reuters Trust Principles.

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