Nestle raises full-year guidance after Q3 sales beats poll

Reuters Zurich | Updated on October 21, 2020

Nestle raised its guidance for organic sales growth to around 3 per cent for 2020 on Wednesday after posting better-than-expected growth of 4.9 per cent for the third quarter driven by strong demand for pet food and health products.

The world’s biggest food group has weathered the Covid-19 pandemic better than some of its peers thanks to its broad portfolio, with resilient pet food and health businesses making up for a slump in food sales to restaurants and cafes.

Demand for foods and drinks consumed at home, well-known brands and products with health benefits remained strong during the pandemic, while sales of products destined to out-of-home venues struggled in the third quarter, the maker of Nescafe coffee and KitKat said in a statement.

ALSO READ: Nestle Professional to expand B2B food products range

For the first nine months of the year, Nestle’s organic sales grew by 3.5 per cent, compared to analysts’ average estimate for 2.8 per cent, according to a company-supplied consensus.

Sales in the Americas posted the strongest growth rate in the nine-month period, while Asia was only slightly positive.

Sales in Swiss francs fell 9.4 per cent to 61.9 billion Swiss francs ($68.33 billion), hit by the sale of Nestle Skin Health and the US ice cream business.

Nestle had previously expected organic growth of 2-3 per cent for this year.

Published on October 21, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like