NSRGY Nestle SA (PK)

   By Giulia Petroni 
 

Nestle SA said Wednesday that sales fell in the first nine months of the year, but raised its full-year guidance.

The Swiss food-and-beverage giant reported sales at 61.91 billion Swiss francs ($68.24 billion) in the period, down from CHF68.37 billion in the previous year. A company-compiled consensus forecast had seen sales at CHF62.09 billion.

Organic sales growth was 3.5%, with real internal growth of 3.3%, boosted by a strong performance in the Americas, Purina PetCare and Nestle Health Science, the company said.

Demand for at-home consumption products remained strong throughout the period, while the out-of-home products' performance remained negative. E-commerce increased in the period, reaching 12.3% of the total group's sales.

Nestle raised its full-year guidance, saying it now expects organic sales growth at around 3%. It had previously targeted organic growth in the range of 2% to 3%.

It also said it expects underlying trading operating profit margin to improve, and underlying earnings per share at constant currencies, as well as capital efficiency, to increase.

Nestle said the strategic review of some of its businesses, including part of the North American waters business, is fully on track and expected to be completed early next year.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

October 21, 2020 02:03 ET (06:03 GMT)

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