Nestle, the world’s largest food group, posted a 3.5% increase in first-half organic sales this morning (12 August), missing consensus expectations of 3.9%.
During the six months to the end of June, group EBIT margin rose 30 bps to 14.1%, the Swiss food giant said.
However, the performance of its food and beverages businesses lagged slightly, with 3.4% organic growth and EBIT margin of 12.4%, up 10 bps on a reported basis or 20 bps in constant currencies.
Net profit totalled CHF5.1bn, down from CHF5.2bn a year earlier.
Earnings were dented by the strength of the Swiss franc and currency exchange weighed on EPS, which rose 8.5% on a constant-currency basis but only increased 3.5% to CHF1.46 after currency exchange.
Looking to the remainder of the year, Nestle said that it expects volume-driven organic growth to accelerate in the second half.