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Thursday, Aug 8
Nestle's underlying sales growth slows
- Nestle (NSRGY.PK) H1 net profit +3.6% to 5.12B Swiss francs ($5.55B), just about topping consensus of 5.112B francs.
- Total revenue +5.3% to 45.17B.
- Organic revenue +4.1%, down from +6.6% a year earlier and missing consensus of +4.6%; kept down by price erosion in Europe.
- The muted growth reflects "lower pricing by our markets, as we leveraged softer input costs to meet the expectations of today's more value conscious consumers."
- Developed markets +1% vs +2.6%, developing markets +8.2% vs +12.9%.
- Operating margin 15.1% vs 14.9% last year.
- CEO Paul Bulcke expects Nestle's growth to improve in H2, but organic sales target lowered to +5% from +5-6% previously. (PR)