Nestle sales under pressure

Now Reading:

Nestle sales under pressure

Text size Aa Aa

Weakness in Asia took a bite out of sales growth at Nestle which fell 3.1 percent in the first nine months of this year.

The world’s biggest food group said along with slowing growth in emerging markets it was feeling pricing pressures in Europe.

The maker of KitKat and Nescafe additionally listed the strength of the Swiss franc as a negative factor.

The sales figure came in below forecasts and sent Nestle shares lower despite the company sticking to its target for organic sales growth of around five percent this year.

Nestle has moved to address underperforming businesses, including selling some.

That has been done to free up resources to invest in its flagship brands and in new high-margin divisions like health science and skin care.

with Reuters