-Nestle expects organic sales growth at around 3% in the full year.
-Sales fell in the first nine months partly due to currency effects
-Portfolio review is on track, expected to be finalized in early 2021
By Giulia Petroni
Nestle SA raised its full-year guidance for organic sales growth on Wednesday after reporting 4.9% growth in the third quarter.
The Swiss food-and-beverage giant's sales in the first nine months were down 9.4% to 61.91 billion Swiss francs ($68.24 billion) compared to the previous-year period, largely due to foreign exchange currency effects. A company-compiled consensus had forecast sales at CHF62.09 billion.
Organic sales growth in the nine months was 3.5%, with real internal growth of 3.3%, boosted by a strong performance in the Americas and demand for pet food and health products, the company said.
Nestle raised its guidance for the full year, saying it now expects organic sales growth at around 3%. It had previously targeted organic growth in the range of 2% to 3%.
It also said it expects underlying trading operating profit margin to improve, and underlying earnings per share at constant currencies and capital efficiency to increase.
Demand for at-home consumption products was strong throughout the period, while the out-of-home products' performance remained negative. E-commerce increased, reaching 12.3% of the total group's sales.
Nestle said Purina PetCare was the largest contributor to the company's growth, boosted by premium brands Purina Pro Plan, Purina ONE and Felix.
Health Science posting double-digit growth, reflecting an increased demand for products supporting people's immune systems during the pandemic. Confectionary and water registered a sales decrease mainly due to their exposure to out-of home channels, according to the company.
The strategic reviews of part of the North American waters business as well as of the peanut milk and porridge business in China are on track and expected to be completed early next year, Nestle said.
Write to Giulia Petroni at email@example.com
(END) Dow Jones Newswires