By Giulia Petroni 



  Nestle SA on Thursday reported results for the first half of the year. Here's what we watched: 


  SALES: The Swiss and beverage giant reported sales of CHF41.15 billion in the first half, down from CHF45.46 billion in the previous year and below a company-compiled consensus estimate of CHF41.50 billion. Organic sales growth was 2.8%, beating analysts' estimates of 2.3%. In the second quarter, OSG suffered a slowdown of 1.3%. 


  WHAT WE WATCHED: 


  --GUIDANCE: Nestle's firm guidance shows the company has control over its improving core operations despite volatility caused by the coronavirus pandemic, according to analysts. The company expects OSG between 2% and 3% in the full-year and an improvement in underlying TOP margin and underlying EPS in constant currency and capital efficiency. This compares to previous guidance for a continued improvement in OSG and margin. Guidance assumes no material deterioration from the present conditions in relation to the coronavirus crisis. 


  --2Q SALES GROWTH: OSG slowed in quarter due to the impact of coronavirus-related restrictions on out-of-home businesses and the effect of consumer destocking after the stockpiling surge experienced in the first three months of the year. 


  --WATERS: Water sales dropped 10.4% globally in the first half due to the division's high exposure to out-of-home and on-the-go consumption. Earlier this year, the company announced it is exploring the option for the potential sale of the majority of its waters business in North America. 


  Write to Giulia Petroni at giulia.petroni@wsj.com