Nestlé: raises forecast for 2020 sales growth
(CercleFinance.com) - Nestlé, the world's largest food and drink producer, reported organic growth of 3.
5% for the first nine months of the year, buoyed by strong growth in the US, in its pet food brand Purina, and in its nutrition and health business.
The owner of brands such as Maggi, Nescafé and KitKat however said that reported sales actually fell by 9% to 61.9 billion Swiss francs at end-September, due to divestitures and FX factors.
By product category, the largest contributor to organic growth was Purina, alongside its premium brands such as Felix, the Vevey-based group said.
Its health science division posted double-digit growth, it noted, thanks to increased consumer demand for products that boost the immune system, such as vitamins, minerals and food supplements.
The Swiss company said it expects full-year organic growth to be close to 3%, just above the consensus of 2.9% and at the top of its previous target of 2% to 3%. It also expects its underlying trading operating margin to improve.
Nestlé Shares were up 0.7% in early morning trading, making the stock the third-biggest winner on the SMI index in Zurich.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
5% for the first nine months of the year, buoyed by strong growth in the US, in its pet food brand Purina, and in its nutrition and health business.
The owner of brands such as Maggi, Nescafé and KitKat however said that reported sales actually fell by 9% to 61.9 billion Swiss francs at end-September, due to divestitures and FX factors.
By product category, the largest contributor to organic growth was Purina, alongside its premium brands such as Felix, the Vevey-based group said.
Its health science division posted double-digit growth, it noted, thanks to increased consumer demand for products that boost the immune system, such as vitamins, minerals and food supplements.
The Swiss company said it expects full-year organic growth to be close to 3%, just above the consensus of 2.9% and at the top of its previous target of 2% to 3%. It also expects its underlying trading operating margin to improve.
Nestlé Shares were up 0.7% in early morning trading, making the stock the third-biggest winner on the SMI index in Zurich.
Copyright (c) 2020 CercleFinance.com. All rights reserved.