Nestle H1 sales growth flattens as earnings rise

[ZURICH] Swiss food group Nestle reported slightly better than expected earnings for the first half of 2017, a month after the world's largest food company was targeted by activist investor Daniel Loeb.

The maker of Kitkat chocolate bars and Maggi soups said on Thursday net profit rose 19 percent to 4.9 billion Swiss francs (S$6.99 billion) in the first six months of the year, beating a 4.83 billion franc estimate in a Reuters poll.

Organic sales, which includes volume and price increases, grew by 2.3 per cent, the same rate as the first quarter, trailing analyst estimates of 2.8 per cent and a deceleration from the 3.5 per cent rate a year earlier.

It also confirmed its full-year forecast for sales growth of 2 to 4 per cent and a stable trading operating margin in constant currency.

REUTERS