Nestle 1st Half Profit Rose, Raises 2021 Sales Growth Guidance

By Giulia Petroni

Nestle SA said Thursday that net profit rose in the first half and raised its full-year organic sales growth guidance.

The Swiss food and beverage giant said net profit for the period was 5.9 billion Swiss francs ($6.48 billion), up 1.1% compared with the year-earlier period.

Sales came in at CHF41.76 billion, up from CHF41.15 billion. Real internal growth for the period was 6.8%, while organic growth reached 8.1%.

"Organic growth was strong across most geographies and categories, with robust momentum in retail sales and a return to growth in out-of-home channels," Chief Executive Officer Mark Schneider.

Nestle said it now expects full-year organic sales growth between 5% and 6%. The underlying trading operating profit margin is expected around 17.5%, reflecting time delays between input cost inflation and pricing, as well as integration costs related to the acquisition of The Bountiful Company's core brands.

The company said it expects underlying earnings per share at constant currency and capital efficiency to increase this year, while the mid-term outlook for continued moderate margin improvement remains unchanged.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

July 29, 2021 01:52 ET (05:52 GMT)

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