Nestle's Organic Sales Growth Beat Consensus -- Earnings Review
October 21 2020 - 11:29AM
Dow Jones News
By Giulia Petroni
Nestle SA earlier Wednesday reported nine-month sales figures.
Here is what we watched:
SALES: The Swiss food-and-beverage giant's sales in the period
came in at 61.91 billion Swiss francs ($68.24 billion), down 9.4%
compared with the previous year. A company-compiled consensus
forecast had seen sales at CHF62.09 billion.
WHAT WE WATCHED:
-3Q GROWTH: Nestle reported organic sales growth of 4.9% in the
third quarter. The result contributed to 3.5% organic sales growth
in the nine months, which is above the 2.8% growth estimated by a
company-compiled consensus.
-LIFTED GUIDANCE: Full-year organic sales growth is expected to
be around 3%, from a prior forecast of between 2% and 3%, according
to the company. The raise implies organic growth of 1.6% in the
fourth quarter, according to analysts at RBC Capital Markets, which
is similar to the second quarter but implies "a big step down" from
the third quarter's 4.9%. "This seems conservative unless we hear
to the contrary from Nestle," analysts at the bank say.
-PRODUCT TRENDS: Nestle's health-science unit reported strong
double-digit growth in the first nine months of the year,
reflecting consumers' increasing demand for products boosting
health and the immune system during the pandemic. Organic growth
was also driven by strong demand for pet food and coffee.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
October 21, 2020 11:14 ET (15:14 GMT)
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