Latest news with #Nestle
Yahoo
14 hours ago
- Business
- Yahoo
P&G signals sluggish annual growth amid leadership change, tariffs
(Reuters) -Procter & Gamble on Tuesday forecast annual results largely below Wall Street estimates in the face of cautious consumers, a day after the Tide parent named an insider as CEO to steer it through the tariff uncertainty. The muted expectations will likely pile pressure on Shailesh Jejurikar, who on Monday was named to the top post replacing Jon Moeller. Meanwhile, P&G, which topped fourth-quarter revenue and profit estimates on price hikes, will raise prices on about a quarter of its products in the U.S., starting this month, to help offset the cost of new tariffs imposed by President Donald Trump. The price hikes have been communicated to retailers such as Walmart and Target and are in the mid-single digits across categories, a spokesperson said, and will be seen on shelves starting in August. The comments from the world's largest consumer goods maker reinforce how consumers, particularly in the lower income category, are seeking value as they look to stretch their household budgets. Packaged food maker Nestle said last week that consumers in North America remained weak. P&G, which makes household basics spanning from Bounty paper towel to Metamucil fiber supplements, estimated tariffs will increase its costs by about $1 billion before tax for fiscal 2026. That compares with projections of between $1 billion and $1.5 billion made in April. P&G expects fiscal 2026 core net earnings per share growth in the range of flat to up 4% to between $6.83 and $7.09, compared with estimates of a 3.49% growth to $6.99, according to estimates compiled by LSEG. The company expects total net sales for fiscal 2026 to grow between 1% to 5%, the mid-point of which was slightly below analysts' average estimate of a 3.09% rise to $86.80 billion. P&G began a restructuring effort in June to exit some brands and cut about 7,000 jobs over the next two years to increase productivity. The company's revenue rose 1.7% to $20.89 billion in the fourth quarter, compared with analysts' average estimate of a 1.38% rise to $20.82 billion. Prices rose 1% while volumes were flat year-over year, after having fallen about 1% in the prior quarter. The company reported earnings per share of $1.48 for the three months ended June 30, compared with estimates of $1.42. Its shares were up marginally in premarket trading. They have fallen about 6% so far this year.
Reuters
14 hours ago
- Business
- Reuters
P&G signals sluggish annual growth amid leadership change, tariffs
July 29 (Reuters) - Procter & Gamble (PG.N), opens new tab on Tuesday forecast annual results largely below Wall Street estimates in the face of cautious consumers, a day after the Tide parent named an insider as CEO to steer it through the tariff uncertainty. The muted expectations will likely pile pressure on Shailesh Jejurikar, who on Monday was named to the top post replacing Jon Moeller. Meanwhile, P&G, which topped fourth-quarter revenue and profit estimates on price hikes, will raise prices on about a quarter of its products in the U.S., starting this month, to help offset the cost of new tariffs imposed by President Donald Trump. The price hikes have been communicated to retailers such as Walmart (WMT.N), opens new tab and Target (TGT.N), opens new tab and are in the mid-single digits across categories, a spokesperson said, and will be seen on shelves starting in August. The comments from the world's largest consumer goods maker reinforce how consumers, particularly in the lower income category, are seeking value as they look to stretch their household budgets. Packaged food maker Nestle (NESN.S), opens new tab said last week that consumers in North America remained weak. P&G, which makes household basics spanning from Bounty paper towel to Metamucil fiber supplements, estimated tariffs will increase its costs by about $1 billion before tax for fiscal 2026. That compares with projections of between $1 billion and $1.5 billion made in April. P&G expects fiscal 2026 core net earnings per share growth in the range of flat to up 4% to between $6.83 and $7.09, compared with estimates of a 3.49% growth to $6.99, according to estimates compiled by LSEG. The company expects total net sales for fiscal 2026 to grow between 1% to 5%, the mid-point of which was slightly below analysts' average estimate of a 3.09% rise to $86.80 billion. P&G began a restructuring effort in June to exit some brands and cut about 7,000 jobs over the next two years to increase productivity. The company's revenue rose 1.7% to $20.89 billion in the fourth quarter, compared with analysts' average estimate of a 1.38% rise to $20.82 billion. Prices rose 1% while volumes were flat year-over year, after having fallen about 1% in the prior quarter. The company reported earnings per share of $1.48 for the three months ended June 30, compared with estimates of $1.42. Its shares were up marginally in premarket trading. They have fallen about 6% so far this year.
Yahoo
14 hours ago
- Business
- Yahoo
P&G signals sluggish annual growth amid leadership change, tariffs
(Reuters) -Procter & Gamble on Tuesday forecast annual results largely below Wall Street estimates in the face of cautious consumers, a day after the Tide parent named an insider as CEO to steer it through the tariff uncertainty. The muted expectations will likely pile pressure on Shailesh Jejurikar, who on Monday was named to the top post replacing Jon Moeller. Meanwhile, P&G, which topped fourth-quarter revenue and profit estimates on price hikes, will raise prices on about a quarter of its products in the U.S., starting this month, to help offset the cost of new tariffs imposed by President Donald Trump. The price hikes have been communicated to retailers such as Walmart and Target and are in the mid-single digits across categories, a spokesperson said, and will be seen on shelves starting in August. The comments from the world's largest consumer goods maker reinforce how consumers, particularly in the lower income category, are seeking value as they look to stretch their household budgets. Packaged food maker Nestle said last week that consumers in North America remained weak. P&G, which makes household basics spanning from Bounty paper towel to Metamucil fiber supplements, estimated tariffs will increase its costs by about $1 billion before tax for fiscal 2026. That compares with projections of between $1 billion and $1.5 billion made in April. P&G expects fiscal 2026 core net earnings per share growth in the range of flat to up 4% to between $6.83 and $7.09, compared with estimates of a 3.49% growth to $6.99, according to estimates compiled by LSEG. The company expects total net sales for fiscal 2026 to grow between 1% to 5%, the mid-point of which was slightly below analysts' average estimate of a 3.09% rise to $86.80 billion. P&G began a restructuring effort in June to exit some brands and cut about 7,000 jobs over the next two years to increase productivity. The company's revenue rose 1.7% to $20.89 billion in the fourth quarter, compared with analysts' average estimate of a 1.38% rise to $20.82 billion. Prices rose 1% while volumes were flat year-over year, after having fallen about 1% in the prior quarter. The company reported earnings per share of $1.48 for the three months ended June 30, compared with estimates of $1.42. Its shares were up marginally in premarket trading. They have fallen about 6% so far this year.
The Star
a day ago
- Business
- The Star
Recovery in sales volume to propel Nestle
PETALING JAYA: Nestle (M) Bhd is poised for a stronger second half of 2025 (2H25), underpinned by easing raw material prices, stable margins and a steady recovery in sales volume, following a challenging year marked by cost pressures and boycott-related disruptions. According to Maybank Investment Bank (IB) Research, Nestle's sales volume has shown progressive recovery in 1H25 and this remains its key focus in 2H25. The research house raised its 2025 to 2027 earnings forecasts by up to 22%, citing 'a clearer route to recovery in relation to its brand image and cost pressures from raw materials.' Maybank IB Research said that Nestle's second-quarter revenue rose 10% year-on-year (y-o-y), driven by price hikes and systematic sales volume recovery. It added that 'the group is on a stronger footing to enhance market competitiveness and rebuild market share across its product categories'. Meanwhile, CGS International Research remained cautious, citing stretched valuations. 'We believe valuations are rich at 35.8 times 2025 price-earnings ratio with a 2.4% 2025 dividend yield,' the research house said, maintaining a 'reduce' call with a target price of RM78. It acknowledged a volume recovery in 2Q25 following the easing of boycotts and noted that 'export revenue growth was helped by growing demand for halal products in both existing and new markets'. It added that management saw stability in margins supported by 'ongoing hedging efforts, and recent easing in cocoa and coffee prices'. Hong Leong Investment Bank (HLIB) Research pointed to a mixed outlook, with operational efforts offsetting persistent external challenges. 'The group continues to navigate rising commodity costs through a steadfast focus on operational efficiency, cost savings initiatives, and greater digitalisation,' it said. Despite selective price increases, HLIB Research cautioned that 'the ongoing boycott against Western-affiliated brands continued to dampen demand' and is unlikely to fully revert soon. Nonetheless, the the research house highlighted that product innovation remained a bright spot, with launches such as Nescafe Coffee Concentrate and Kit Kat 3-in-1 reinforcing the group's pivot toward health-focused and convenience-led offerings. HLIB Research reiterated its 'hold' rating with an unchanged target price of RM80. CIMB Research also held a steady view, with no changes to its forecasts or 'hold' rating. It noted that 'Nestle does not intend to implement major selling price adjustments, opting instead to focus on maintaining affordability in view of the current subdued consumer spending environment.' The research house underscored Nestle's long-term growth strategy centred on innovation, including the 'world's first drinkable KitKat' as aligned with global priorities. 'Gross profit margins are expected to remain stable in 2H25,' it added, citing digitalisation and efficiency initiatives as cushions against cost pressures. TA Research struck an optimistic tone, raising its earnings forecasts by up to 7.6% and its target price to RM102.80. It attributed the gains to higher sales assumptions and robust brand investments. 'Operating expenses rose 4% y-o-y mainly attributed to higher marketing investments,' the research house noted, pointing to promotional campaigns tied to new launches and Milo's 75th anniversary. It said the efforts are supportive of top line growth, with the potential to strengthen brand equity, enhance customer loyalty, and reinforce Nestle's market leadership.
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Nestle on road to recovery as boycott sentiment eases
Many Malaysians have opted for cheaper alternatives over Nestle's range of F&B products. (Nestle Malaysia pic) PETALING JAYA : Things are looking up for Nestle (Malaysia) Bhd as rising sales and easing of a consumer boycott precipitated a 20% jump in net profit for its second quarter ended June 30 (Q2 FY2025). Q2 net profit rose to RM112.11 million from RM93.59 million a year ago while revenue increased 9.5% to RM1.67 billion, on the back of higher export and domestic sales. However, for the first six months of FY2025, net profit dipped 5.4% to RM273.45 million from RM289.11 million last year despite revenue rising 4% to RM3.44 billion. Nevertheless, the consensus-beating Q2 earnings saw investors piling into the dividend stock, pushing it up 11% or RM8.60 over the past two days to close at RM85.50, valuing the group at RM20.05 billion. MIDF Research said domestic sales registered positive growth, supported by sustained brand strength, effective pricing execution, and the successful rollout of new product innovations. It added that export sales also held firm, leveraging Nestle Malaysia's role as the group's largest global halal manufacturing hub. The subsidiary of Switzerland-based Nestle SA has been operating in Malaysia since 1912. It is known for its food and beverage offerings including Milo, Maggi and Nescafe, the staple of generations of Malaysians. 'Nestle is gradually recovering from the boycott-related revenue decline and elevated input cost base seen in 2024. We stay cautious but acknowledge its structural strength and recovery potential,' it said in a note today. MIDF maintained its 'hold' recommendation on the stock with an unchanged target price (TP) of RM77.90. Double whammy The current bullish sentiment among investors is understandable given that FY2024 was a year to forget for Nestle Malaysia. Its FY2024 net profit tumbled 37% to RM415.62 million from RM659.87 million in FY2023, the lowest in 14 years. Its Q4 FY2024 net profit plunged 72.2% to RM41.1 million from RM148.1 million a year earlier. The company was hit by a double whammy last year as consumers increasingly ditched its wide range of F&B products for cheaper alternatives while others joined in the boycott against Western brands over the Gaza conflict. Brands such as McDonald's, Starbucks, Burger King and Nestle have come under fire for their perceived association with Israel in the ongoing Middle East conflict. Meanwhile, RHB Research has upgraded its call to 'buy' from 'neutral' and raised its TP for the stock to RM95 from RM77 previously. The research house said Nestle's first-half results were above expectations and expects its recovery to pick up steam, spurred by margin expansion. 'This, together with the demand normalisation stemming from improving sentiment on its brands, lead us to believe its prospects may have turned the corner. 'We upgrade our call to 'buy' as we think its comeback is timely in view of the pick-up in investor appetite for defensive stocks amid uncertain market conditions,' it said in a note today.
