Stock Market News

Nestle beats first-half organic sales expectations

2023.07.27 01:53


© Reuters. FILE PHOTO: Shopping bag with Nestle products is pictured in the supermarket of Nestle headquarters in Vevey, Switzerland, February 13, 2020. REUTERS/Pierre Albouy/FILE PHOTO:

LONDON (Reuters) -Nestle improved its full-year organic sales outlook and reported better-than-expected first-half organic sales, as the world’s biggest packaged food company again raised prices to cope with higher input costs.

Nestle said it is narrowing its full-year organic sales growth guidance to a range of 7%-8% from a range of 6-8%.

The Swiss company, which makes Kit Kat chocolate wafer bars and Nescafe coffee, said organic sales during the period rose 8.7%, beating average estimate 8.1% growth, according to a company-provided analyst consensus.

Nestle’s 9.5% price increases were ahead of the average analyst estimate of 8.7%. Real internal growth – or sales volumes – fell 0.8% versus expectations of a 0.6% decline.

“For the remainder of the year, we are confident that we will deliver a positive combination of volume and mix, an improvement in gross margin and a significant increase in marketing investments,” CEO Mark Schneider said in a statement.

The consumer goods company is one of many – from Unilever (NYSE:) to P&G – that have in the past two years struggled to manage high costs of everything from sunflower oil to packaging. Their problems began with the Covid-19 pandemic and unusual weather patterns hurting agricultural commodities, and have worsened since Russia’s invasion of Ukraine.

By comparison, earlier this week consumer industry rivals reported mixed volume results. Reckitt reported sales volumes for the second quarter were down 4.3%, Unilever’s quarterly volumes were down 0.3% and Danone’s second-quarter volume/mix declined 2.3%.

Analysts and investors have repeatedly expressed concerns that hefty increases in selling prices over the past two years will alienate consumers and push them towards cheaper private label brands.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 76,197.42 1.80%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,922.01 3.62%
tether
Tether (USDT) $ 1.00 0.08%
solana
Solana (SOL) $ 204.18 8.88%
bnb
BNB (BNB) $ 598.25 0.60%
usd-coin
USDC (USDC) $ 1.00 0.00%
xrp
XRP (XRP) $ 0.551294 0.14%
dogecoin
Dogecoin (DOGE) $ 0.197573 2.75%
staked-ether
Lido Staked Ether (STETH) $ 2,919.03 3.55%
cardano
Cardano (ADA) $ 0.431263 16.36%
tron
TRON (TRX) $ 0.161562 0.62%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,459.01 3.82%
the-open-network
Toncoin (TON) $ 4.90 0.30%
avalanche-2
Avalanche (AVAX) $ 28.09 4.78%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 1.61%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 76,091.39 1.77%
weth
WETH (WETH) $ 2,921.72 3.53%
chainlink
Chainlink (LINK) $ 12.93 5.11%
bitcoin-cash
Bitcoin Cash (BCH) $ 372.92 1.18%
sui
Sui (SUI) $ 2.31 1.92%
polkadot
Polkadot (DOT) $ 4.28 5.48%
leo-token
LEO Token (LEO) $ 6.40 3.00%
usds
USDS (USDS) $ 0.991092 0.99%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,073.36 3.69%
litecoin
Litecoin (LTC) $ 71.48 0.87%
uniswap
Uniswap (UNI) $ 8.74 2.11%
near
NEAR Protocol (NEAR) $ 4.22 1.56%
aptos
Aptos (APT) $ 9.70 0.68%
pepe
Pepe (PEPE) $ 0.000011 3.56%
bittensor
Bittensor (TAO) $ 501.36 3.07%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.41 1.42%
internet-computer
Internet Computer (ICP) $ 7.74 0.22%
dai
Dai (DAI) $ 0.999708 0.04%
ethereum-classic
Ethereum Classic (ETC) $ 20.28 1.75%
monero
Monero (XMR) $ 164.04 0.04%
stellar
Stellar (XLM) $ 0.101188 3.01%
crypto-com-chain
Cronos (CRO) $ 0.11 28.58%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.23%
kaspa
Kaspa (KAS) $ 0.112428 4.77%
whitebit
WhiteBIT Coin (WBT) $ 19.57 1.51%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.364455 6.98%
aave
Aave (AAVE) $ 182.89 1.83%
blockstack
Stacks (STX) $ 1.67 0.12%
okb
OKB (OKB) $ 40.03 0.11%
dogwifcoin
dogwifhat (WIF) $ 2.36 1.94%
first-digital-usd
First Digital USD (FDUSD) $ 0.999444 0.00%
arbitrum
Arbitrum (ARB) $ 0.57267 0.97%
filecoin
Filecoin (FIL) $ 3.72 0.32%
mantle
Mantle (MNT) $ 0.657415 3.67%