Nestle's sales grow 3.5% to 45.5B CHF in H1

Friday, 26. July 2019 07:21

Nestle SA posted on Friday sales of 45.45 billion Swiss francs for the first six months of 2019, 3.5% higher annually. The Swiss-based food and drinks giant noted that its free cash flow was up by 40.4% in the same period, reaching CHF 4.1 billion. Meanwhile, underlying earnings per share (EPS) jumped 15.7% to CHF 2.13, as the reported EPS fell 12.3% to CHF 1.68 on a reported basis. The reported decrease appeared due to the disposal of the US confectionery business, the release noted.

The underlying trading operating profit margin surged by 100 basis points and arrived at 17.1%, with the expected full-year margin above 17.5%. The company also expects EPS to rise for all of 2019, as well as the organic sales growth to be in line with the latest results.

"Our growth was broad-based with our largest market, the United States, performing particularly well. Across our categories increased investment behind our brands and in innovation is clearly paying off, as reflected in our strong momentum in PetCare and the return to mid single-digit growth in coffee. Our Starbucks launch has been a great success so far and we plan on further geographic expansion and product innovation to make the most of this unique opportunity," said Mark Schneider, the CEO of the company.

Related Links: Nestlé SA
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Breaking the News / NI