Nestle SA (NSRGY.PK,NSTR.L) reported that its total reported nine-month sales decreased by 0.4% to 65.3 billion Swiss francs from 65.5 billion francs, prior year, reduced by net divestments of 2.6% (mainly due to the creation of the Froneri joint venture) and negative foreign exchange effects of 0.4%. Organic growth increased to 2.6%, supported by improved RIG of 1.8%.
The Group confirmed its sales guidance for 2017, and now expects organic growth for the full year to be around the level of the nine-month period. The underlying trading operating profit margin for 2017 is set to improve by at least 20 basis points in constant currency, in line with the Group's expectations.
Mark Schneider, Nestlé CEO: "Our sales results for the nine-month period are in line with our expectations communicated in July. Organic sales growth continued to benefit from industry-leading volume growth, which illustrates our ability to innovate and meet consumer demand. Pricing remained soft. The development of our underlying trading operating profit margin is fully in line with our expectations for 2017."
The Group said its structural savings initiatives are progressing faster than originally planned, leading to an additional increase of 400-500 million francs in restructuring and related expenses in 2017. As a result, trading operating profit margin will decrease by 40-60 basis points in constant
currency. The Group expects underlying earnings per share in constant currency and capital efficiency to increase.
For comments and feedback contact: editorial@rttnews.com
Business News