Swiss food giant Nestlé on Thursday raised its growth target for 2021 after an increase in its half-year sales, driven by coffee and pet products, however, citing cost inflation.
For the first half of the year, the Swiss group reported an increase of 1.1% over one year in its net profit to 5.9 billion Swiss francs (5.4 billion euros) and an increase of its turnover of 1.5% to 41.8 billion.
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By comparison, analysts polled by the Swiss agency AWP expected an average of 5.8 billion Swiss francs in profits for 41.9 billion francs in income. Its organic growth, a key indicator to assess the evolution of its sales excluding currency effects and acquisitions, jumped 8.1%.
The Swiss group, which owns in particular the Nespresso coffee pods, Maggi broths and the Purina and Felix pet food brands, now expects an increase in organic growth which should be between 5% and 6%. The group, however, mentioned cost inflation, estimating that its operating margin should be around 17.5%, especially as exceptional integration costs will be added related to the acquisition of brands from the American manufacturer of vitamins and supplements The Bountiful Company which is expected to be finalized in August.
