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Updated February 22nd, 2024 at 12:47 IST

Nestle's full-year sales growth misses expectations amid price hikes

Swiss company expects organic sales growth, along with a "moderate increase" in its underlying trading operating profit margin.

Reported by: Business Desk
Nestle India
Nestle's full-year sales growth misses expectations amid price hikes | Image:Nestle India
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Nestle sales expectations: Nestle, the food company, reported full-year organic sales growth slightly below expectations on Thursday as it continued to hike prices, leading some consumers to switch to rival brands.

The Swiss company expects organic sales growth of around 4 per cent in 2024, along with a "moderate increase" in its underlying trading operating profit margin.

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Organic sales, which exclude currency movements and acquisitions, rose 7.2 per cent in the year ended Dec. 31, Nestle said. This figure fell slightly short of analysts' average expectation of 7.4 per cent.

Net profit surges

However, Nestle's net profit surged by about 20 per cent to 11.2 billion Swiss francs ($12.76 billion).

CEO Mark Schneider noted, "Unprecedented inflation over the last two years has increased pressure on many consumers and impacted demand for food and beverage products."

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Full-year sales declined by 1.5 per cent to about 93 billion Swiss francs, missing estimates of 93.68 billion Swiss francs.

Nestle's 7.5 per cent price increases for the full year met the average analyst estimate. Real internal growth, which measures sales volumes, fell by 0.3 per cent for the period, compared to expectations of a 0.1 per cent decline.

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Sales volumes in the fourth quarter turned positive, rising by 0.4 per cent.

(with Reuters inputs)

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Published February 22nd, 2024 at 12:38 IST

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