By Joshua Kirby
Nestle, the Swiss consumer-goods giant, has raised its outlook for sales growth this year after reporting strong first-half revenue fueled by pricing effects.
In the first six months of the year, Nestle recorded sales of 46.29 billion Swiss francs ($53.78 billion), representing an organic growth of 8.7% compared to the same period last year. Although slightly below analysts' consensus of CHF46.68 billion, the company's sales growth was primarily driven by higher pricing as a strategic response to rising costs.
The trading operating profit for the period was CHF7.90 billion, a 2.9% increase from the previous year, resulting in a margin of 17.1%.
Looking ahead, Nestle now expects organic sales growth of 7%-8% for the full year, as opposed to its previous range of 6%-8%. The underlying trading operating margin is still projected to be within the range of 17%-17.5%. CEO Mark Schneider noted that volume growth and continued pricing adjustments will contribute to the company's positive performance in the second half of the year.
Schneider commented, "At-home consumption post-Covid has now normalized, removing a growth drag on some of our categories," and he also highlighted the ongoing growth in out-of-home channels.