Nestle Earnings: Organic Growth Short of Expectations and Guidance Downgrade; Valuation Trimmed
Nestle reported half-year fiscal 2024 results that included organic growth of 2.1% (real internal growth of positive 0.1% and pricing up 2%), below the company-compiled consensus estimate of 2.5%, driven predominantly by worse-than-expected pricing (positive 2% versus positive 3% for consensus). The underlying 17.4% trading operating margin was ahead of the 17.2% consensus expectation. Regionally, real internal growth (volume and mix effect) was positive in emerging markets and slightly negative in developed markets despite pricing slowing down across all geographies. At the product category level, water and prepared dishes, and cooking aids had the weakest real internal growth in fiscal 2023, down 0.8% and 3%, respectively.