Nestle's Nine-Month Organic Sales Growth Missed Expectations—Update
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)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Why Immigration Has Boosted Job Gains and the Economy
-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Target Stock a Buy, a Sell, or Fairly Valued?
-
Walmart Earnings: Low Prices and Strong Digital Presence Drive Market Share Gains
-
After Earnings and a Big Selloff, Is Shopify Stock a Buy, a Sell, or Fairly Valued?
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing
-
Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?
-
A Cheap Dividend Aristocrat to Buy Before It Bounces Back