Price-wary shoppers push down Nestlé profits
Swiss food giant Nestlé says it suffered from weak consumer confidence in developed countries in the first six months of the year and from slowing growth in emerging economies.
Net profit rose by 3.7 percent to 5.1 billion francs ($5.47 billion) in the first half of the year compared to the outcome 12 months ago, the group said on Thursday.
Nestlé, which is the biggest food processor in the world, said that current operating profit rose by 6.8 percent to 6.8 billion francs and that sales rose by 5.3 percent to 45.2 billion francs.
Analysts polled by AWP agency had broadly expected a net profit of 5.1 billion francs from sales totalling 45.5 billion francs.
Internal growth of the business was 4.1 percent from 6.6 percent in the equivalent period last year.
Managing director Paul Bulcke said that the outcome for internal growth had slipped back slightly.
This was because the group had passed on a fall in raw materials costs to customers who were increasingly attentive to prices.
The group adjusted its outlook for this year downwards looking now towards internal growth of 5.0 percent instead of 5.0-6.0 percent previously.
However, it expected its margins and recurrent profit per share to improve on a basis of constant exchange rates.