Latest news with #Laurent Freixe
Yahoo
24-07-2025
- Business
- Yahoo
Nestle struggles amid weak China market
Nestle said Tuesday its net profit fell in the first half of the year as the Swiss food giant behind Nespresso coffee capsules and KitKat chocolate bars struggles to turn around its fortunes amid sluggish consumer spending in China. The company whose brands also include Purina dog food, Maggi bouillon cubes, Gerber baby food and Nesquik chocolate-flavoured drinks, reported a 10.3 percent drop in first half profits to 5.1 billion Swiss francs ($6.4 billion). Sales, however, only dipped by 1.8 percent to 44.2 billion francs, which was due in large part to passing on higher cocoa and coffee prices to consumers, although faced even greater headwinds from the strong Swiss currency. "We are also taking decisive measures to strengthen our business in Greater China," said chief executive Laurent Freixe. The company said China, which has suffered sluggish domestic consumption amid a deflationary price environment, had a 0.7 percentage point impact on organic growth in the second quarter. Overall, the company reported 2.9 percent quarterly organic growth, which strips out currency effects and other elements to measure performance. Nestle warned China would continue to weigh on growth as it invested to turn around its performance. Nestle's shares fell 3.5 percent in a Swiss market that was flat overall, as the sales figures missed the analyst consensus calculated by Swiss financial news agency AWP. Net profit came in slightly higher than expected. Nestle made a surprise switch of its chief executive least year amid soft spending by consumers for food and household goods. Nestle's share price slumped by nearly a quarter last year, raising concerns in Switzerland, where pension funds invest heavily in the company. The company launched a number of measures to boost its product offering and cut costs. That was reflected in better organic growth in the second quarter compared to the same period last year, and Nestle said that it was expected to continue for the rest of the year. Nestle said it was maintaining its 2025 guidance "despite factoring in increased headwinds". It aims for an underlying trading operating profit margin of at least 16 percent this year, compared to 17.2 percent in 2024. It came in at 16.5 percent in the first half of the year. noo/rl/yad Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Malay Mail
24-07-2025
- Business
- Malay Mail
Nestlé hit by weak China demand, profit slips 10pc despite price hikes
ZURICH, July 24 — Nestle said Tuesday its net profit fell in the first half of the year as the Swiss food giant behind Nespresso coffee capsules and KitKat chocolate bars struggles to turn around its fortunes amid sluggish consumer spending in China. The company whose brands also include Purina dog food, Maggi bouillon cubes, Gerber baby food and Nesquik chocolate-flavoured drinks, reported a 10.3 per cent drop in first half profits to 5.1 billion Swiss francs (RM27 billion). Sales, however, only dipped by 1.8 per cent to 44.2 billion francs, which was due in large part to passing on higher cocoa and coffee prices to consumers, although faced even greater headwinds from the strong Swiss currency. 'We are also taking decisive measures to strengthen our business in Greater China,' said chief executive Laurent Freixe. The company said China, which has suffered sluggish domestic consumption amid a deflationary price environment, had a 0.7 percentage point impact on organic growth in the second quarter. Overall, the company reported 2.9 per cent quarterly organic growth, which strips out currency effects and other elements to measure performance. Nestle warned China would continue to weigh on growth as it invested to turn around its performance. Nestle's shares fell 3.5 per cent in a Swiss market that was flat overall, as the sales figures missed the analyst consensus calculated by Swiss financial news agency AWP. Net profit came in slightly higher than expected. Nestle made a surprise switch of its chief executive least year amid soft spending by consumers for food and household goods. Nestle's share price slumped by nearly a quarter last year, raising concerns in Switzerland, where pension funds invest heavily in the company. The company launched a number of measures to boost its product offering and cut costs. That was reflected in better organic growth in the second quarter compared to the same period last year, and Nestle said that it was expected to continue for the rest of the year. Nestle said it was maintaining its 2025 guidance 'despite factoring in increased headwinds'. It aims for an underlying trading operating profit margin of at least 16 per cent this year, compared to 17.2 per cent in 2024. It came in at 16.5 per cent in the first half of the year. — AFP
Yahoo
24-07-2025
- Business
- Yahoo
Nestle to review vitamins business as H1 organic sales beat forecast
LONDON (Reuters) -Nestle ( posted better-than-expected first-half organic sales growth on Thursday as the world's biggest packaged food company announced a strategic review of its vitamins business that could lead to the divestment of some brands. The Swiss company maintained its 2025 outlook, saying it still expects organic sales growth to improve and estimates an underlying trading operating profit margin at or above 16%. Nestle's results may ease investor pressure on CEO Laurent Freixe, who was appointed a year ago to revive the company's share price and sales after the business struggled following the pandemic. The company's share price has risen around 4% this year but lagged rivals like Unilever (ULVR.L) and Danone ( since Freixe's appointment in August last year. Nestle, the maker of KitKat chocolate bars, Nespresso coffee and Maggi seasoning recently announced that Chairman Paul Bulcke would step down. Reuters reported the decision followed rising investor unease over the tenure of Freixe's predecessor and concern about the firm's corporate governance model. Organic sales growth, which excludes the impact of currency movements and acquisitions, rose 2.9% in the six months through June, Nestle said, just above analysts' average forecast of 2.8%. Total reported sales decreased by 1.8% to 44.2 billion Swiss francs ($55.8 billion), compared to analyst expectations of 44.6 billion francs. Nestle said this included the negative impact of 4.7% from foreign exchange, given the Swiss franc's significant strengthening. Freixe said in a statement that Nestle was taking steps to address underperforming business cells and was focussing on winning premium brands in the Vitamins, Minerals and Supplements business. "We have launched a strategic review of our underperforming mainstream and value brands, including Nature's Bounty, Osteo Bi-Flex, Puritan's Pride, and U.S. private label, which may result in the divestment of these brands," Nestle said. Nestle's 2.7% price increases were above the average analyst estimate of 2.5%. Real internal growth - or sales volumes - rose 0.2% versus expectations for a 0.4% increase. ($1 = 0.7923 Swiss francs) Sign in to access your portfolio


Reuters
24-07-2025
- Business
- Reuters
Nestle to review vitamins business as H1 organic sales beat forecast
LONDON, July 24 (Reuters) - Nestle (NESN.S), opens new tab posted better-than-expected first-half organic sales growth on Thursday as the world's biggest packaged food company announced a strategic review of its vitamins business that could lead to the divestment of some brands. The Swiss company maintained its 2025 outlook, saying it still expects organic sales growth to improve and estimates an underlying trading operating profit margin at or above 16%. Nestle's results may ease investor pressure on CEO Laurent Freixe, who was appointed a year ago to revive the company's share price and sales after the business struggled following the pandemic. The company's share price has risen around 4% this year but lagged rivals like Unilever (ULVR.L), opens new tab and Danone ( opens new tab since Freixe's appointment in August last year. Nestle, the maker of KitKat chocolate bars, Nespresso coffee and Maggi seasoning recently announced that Chairman Paul Bulcke would step down. Reuters reported the decision followed rising investor unease over the tenure of Freixe's predecessor and concern about the firm's corporate governance model. Organic sales growth, which excludes the impact of currency movements and acquisitions, rose 2.9% in the six months through June, Nestle said, just above analysts' average forecast of 2.8%. Total reported sales decreased by 1.8% to 44.2 billion Swiss francs ($55.8 billion), compared to analyst expectations of 44.6 billion francs. Nestle said this included the negative impact of 4.7% from foreign exchange, given the Swiss franc's significant strengthening. Freixe said in a statement that Nestle was taking steps to address underperforming business cells and was focussing on winning premium brands in the Vitamins, Minerals and Supplements business. "We have launched a strategic review of our underperforming mainstream and value brands, including Nature's Bounty, Osteo Bi-Flex, Puritan's Pride, and U.S. private label, which may result in the divestment of these brands," Nestle said. Nestle's 2.7% price increases were above the average analyst estimate of 2.5%. Real internal growth - or sales volumes - rose 0.2% versus expectations for a 0.4% increase. ($1 = 0.7923 Swiss francs)