Related News
Nestle sees low rise in revenue
By Thomas Mulier |
February 20, 2009, Friday
|
Print Edition
Print Edition
NESTLE SA, the world's largest food company, said revenue growth will likely be at the low end of its target range this year as worsening economies make it tougher to push price increases on to consumers.
The Swiss bottler of Perrier water, which yesterday reported a 69-percent rise in 2008 profit on a gain from an asset sale, said it aims for sales excluding acquisitions, disposals and currency swings to climb "at least approaching" 5 percent.
Nestle has a goal for so-called organic growth of 5 percent to 6 percent each year. Analysts expect a 3.7-percent gain in 2009, the slowest in 16 years, according to the median of 11 estimates, Bloomberg News reported.
More United States and European consumers are switching from branded goods such as Nestle's Nescafe instant coffee to cheaper products sold under retailers' own labels. Nestle also said it would trim its buyback to preserve cash.
It's "not quite convincing that the Nestle model will hold" as economies deteriorate, said Andrew Wood, an analyst at Sanford Bernstein, in an e-mailed note. "Nevertheless, these results should land Nestle at the top end of its peer class."
Net income rose to 18 billion Swiss francs (US$15 billion) in 2008 from 10.65 billion francs in 2007, the maker of Purina pet food said. Analysts expected profit of 20.24 billion francs, according to the median of seven estimates.
Nestle gained 9.2 billion francs on July's sale of 25 percent of eyewear maker Alcon Inc for US$10.4 billion.
The Swiss bottler of Perrier water, which yesterday reported a 69-percent rise in 2008 profit on a gain from an asset sale, said it aims for sales excluding acquisitions, disposals and currency swings to climb "at least approaching" 5 percent.
Nestle has a goal for so-called organic growth of 5 percent to 6 percent each year. Analysts expect a 3.7-percent gain in 2009, the slowest in 16 years, according to the median of 11 estimates, Bloomberg News reported.
More United States and European consumers are switching from branded goods such as Nestle's Nescafe instant coffee to cheaper products sold under retailers' own labels. Nestle also said it would trim its buyback to preserve cash.
It's "not quite convincing that the Nestle model will hold" as economies deteriorate, said Andrew Wood, an analyst at Sanford Bernstein, in an e-mailed note. "Nevertheless, these results should land Nestle at the top end of its peer class."
Net income rose to 18 billion Swiss francs (US$15 billion) in 2008 from 10.65 billion francs in 2007, the maker of Purina pet food said. Analysts expected profit of 20.24 billion francs, according to the median of seven estimates.
Nestle gained 9.2 billion francs on July's sale of 25 percent of eyewear maker Alcon Inc for US$10.4 billion.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
