NestlŽ Sales Growth Sweetened by Performance in US and China

by swisscham in Hospitality, Retail, Tourism

Shares in SwitzerlandÕs NestlŽ rose on Thursday after better sales in the US and China helped chief executive Mark Schneider pep up the performance of the worldÕs largest food and drinks group. The company behind brands such as KitKat, Perrier water and NescafŽ coffee reported total sales in the first six months of 2018 had increased 2.8% on an organic, or like-for-like, basis compared with 2.3 % in the same period a year earlier. The pick-up would have been almost 3% without the impact of a protracted truckersÕ strike in Brazil. Analysts had expected 2.5% growth. NestlŽÕs growth fell in 2017 to the slowest in more than two decades amid shifting consumer trends, slow global economic growth and deflationary price pressures. Adding to the pressure on Mr. Schneider, Third Point Ñ the US activist hedge fund founded by Daniel Loeb Ñ invested USD 3.5 billion in a 1.25% stake in the Swiss group. Earlier this month, Third Point complained NestlŽ still had a Òmuddled strategic approachÓ and remained Òinsular, complacent and bureaucraticÓ. However, Mr. Schneider said the first-half results showed that Òour strategic initiatives and rigorous execution are clearly paying off_._._._In particular, the US and China markets showed a meaningful improvementÓ.

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