ZURICH (Reuters) -Nestle has nudged its 2022 sales outlook higher again, the world’s largest packaged food company said ahead of an investor seminar on Tuesday.
The company said it now expected organic sales growth of 8-8.5%, up from an October forecast of around 8%, and an underlying trading operating profit margin of around 17.0%.
Underlying earnings per share in constant currency terms and capital efficiency are also expected to increase, it added.
Organic growth, which cuts out the impact of currency movements and acquisitions, was 8.5% in the nine months to the end of September, the highest since 2008.
Nestle said it had decided to explore strategic options for peanut allergy treatment Palforzia following “slower than expected adoption” by patients and healthcare professionals. It expected the review to be completed in the first half of 2023.
Nestle confirmed it was aiming to repurchase 20 billion Swiss francs ($21.09 billion) worth of shares from 2022 to 2024 and said it had already bought around 9.7 billion francs worth.
The maker of KitKat chocolate and Nescafe coffee also reiterated its goal of increasing its dividend year on year in Swiss franc terms.
Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!
By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.
Nestle shares were indicated 0.8% higher in pre-market activity.
“Nestle is now looking to 2025 with strong self-confidence, as seen in the ambitious financial targets,” Vontobel analyst Jean-Philippe Bertschy wrote in a note to clients, calling the stock a “must have”.
“The higher end of the 17.5% to 18.5% margin range looks highly promising and exciting.”
($1 = 0.9485 Swiss francs)
(Reporting by Michael ShieldsEditing by Miranda Murray, Kirsten Donovan)
Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.