Nestlé raises full-year guidance as coffee wakes up sales
By Jenny McCall
07:01, 20 October 2021
Swiss multinational food and drink processing conglomerate Nestlé raised its full-year outlook for 2021 in its nine-month trading statement, which was released today.
Total reported sales rose by 2.2% to CHF63.3bn ($68.43bn) compared to the same period last year, when it posted figures of CHF61.9 bn.
Full-year guidance lifted
The group, which manufactures and distributes products such as Cheerios breakfast cereal, Nespresso coffee and San Pellegrino water, announced that it now expects its full-year organic sales growth to come in at 6–7%
Nestlé announced that its coffee range was the largest contributor to organic growth, with strong momentum being shown across the three major brands – Nescafe, Nespresso and Starbucks.
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Inflation and supply chain issues not a problem
“Beyond 2021, our mid-term outlook for continued moderate margin improvement remains unchanged. Underlying earnings per share in constant currency and capital efficiency are expected to increase this year,” the statement said.
Nestlé said that the firm had managed to successfully navigate inflation and supply chain constraints while increasing pricing during the third quarter in a “responsible manner.”
Nestlé CEO Mark Schneider commented: “Nestlé continues to take actions on sustainability. We recently laid out our plans to support a just transition to regenerative food systems, which will help achieve our climate targets as we work closely with farming communities around the world to improve soil health, restore water cycles and increase biodiversity for the long-term.”
Nestlé’s stock was up by 3.81% at CHF 117.24 in morning trading in Zurich today.
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