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    Nestle upgrades forecasts after strong first-half

    ZURICH (AFP) – Swiss food giant Nestle said yesterday it would raise its full-year sales forecast after price increases and cost-cutting contributed to a strong performance in the first six months of 2022.

    “In the first half of the year, we delivered strong organic growth,” chief executive Mark Schneider said in a statement.

    “Our local teams implemented price increases in a responsible manner. Volume and product mix were resilient.

    “We limited the impact of unprecedented inflationary pressures and supply chain constraints… through disciplined cost control and operational efficiencies,” Schneider said.

    Nestle said it booked group sales of CHF45.6 billion (USD48 billion) in the period from January to June, an increase of 9.2 per cent over the same period a year earlier.

    At the same time, net profit declined by 11.7 per cent to CHF5.2 billion francs as a result of one-off charges, higher taxes and asset writedowns, the statement said.

    On the basis of its first-half performance, Nestle said it was now pencilling in full-year sales growth of seven to eight per cent, compared with a previous forecast of five per cent.

    Full-year operating margin – a key yardstick of profitability – was projected to reach 17 per cent, at the bottom end of the previous range of 17.0-17.5 per cent.

    Nestle books group sales of CHF45.6 billion in the period from January to June. PHOTO: BLOOMBERG
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