Nestle Nine-Month Sales Fall, Backs 2017 Sales Guidance
October 19 2017 - 2:28AM
Dow Jones News
By Anthony Shevlin
Nestle SA (NESN.EB) said Thursday its sales fell in the first
nine months partly due to divestments, and confirmed its sales
guidance for the year.
Sales in the first nine months fell 0.4% to 65.27 billion Swiss
francs ($66.57 billion), compared with CHF65.51 billion a year
earlier.
The Swiss company said organic sales growth--excluding currency
effects and acquisitions--rose 2.6% in the January-September
period, adding that it now expects full-year organic growth to be
around that level. Nestle had previously said it expected organic
growth to be in the lower half of a 2%-4% range.
Organic sales growth is slightly above analyst expectations
although the sales figure is below expectations. According to a
consensus forecast of 24 analysts compiled by Nestle, analysts
expected organic sales growth of 2.5% and sales of CHF65.58
billion.
Nestle Chief Executive Mark Schneider said the company continued
to look for ways to improve margins and would thus have further
restructuring and related expenses of CHF400 million to CHF500
million in 2017. Mr. Schneider expects Nestle's trading operating
profit margin to decrease by 40 to 60 basis points, and its
underlying margin on trading operating profit to rise by 20 basis
points.
"The development of our underlying trading operating profit
margin is fully in line with our expectations for 2017," Mr.
Schneider said.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com
(END) Dow Jones Newswires
October 19, 2017 02:13 ET (06:13 GMT)
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