Nestle 1st Half Profit Rose, Coronavirus Slowed 2Q Growth In Most Core Markets
July 30 2020 - 2:21AM
Dow Jones News
By Giulia Petroni
Nestle SA said Thursday that first-half net profit rose, but
that it experienced slower growth in the majority of its core
markets in the second quarter due to the coronavirus pandemic.
The Swiss food and beverage giant said net profit for the period
was 5.9 billion Swiss francs ($6.44 billion) compared with CHF5.07
billion for the year-earlier period.
Sales came in at CHF41.15 billion, down from CHF45.46 billion.
Real internal growth for the period was 2.6%, Nestle said, while
organic growth reached 2.8%.
The company said Purina PetCare, dairy, culinary, coffee at home
and Nestle health-science products reported a strong growth, while
water and confectionery suffered a decline.
It also recorded a significant shift from out-of-home and
on-the-go products to at-home consumption, with e-commerce sales
growing by 49%.
For the full year, Nestle said it expects organic sales growth
between 2% and 3%. It also expects the underlying trading operating
profit margin to improve and an increase in underlying earnings per
share in constant currency and capital efficiency.
Nestle said the guidance is based on the assumptions that there
won't be any material deterioration from the present conditions in
relation to the coronavirus crisis.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
July 30, 2020 02:06 ET (06:06 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Nestle (PK) (USOTC:NSRGY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Nestle (PK) (USOTC:NSRGY)
Historical Stock Chart
From Sep 2023 to Sep 2024