Latest news with #NestleSA
Mint
6 days ago
- Business
- Mint
Swiss Firms Rethink Global Strategy After Tariff Surge
Simon Michel couldn't take the risk of waiting any longer. As Switzerland was assessing the shock announcement that the US would impose a 39% tariff, the chief executive officer of Ypsomed Holding AG realized that he needed to act. Ypsomed plans to move some production of medical devices to the German city of Schwerin, where the tariff is less than half the Swiss level. The executive also wants to ramp up production in the US, he told Bloomberg News. The Burgdorf-based company isn't alone. Across the country, executives and owners at businesses — from large multinationals such as food giant Nestle SA to small domestic champions — are trying to figure out how to deal with the new reality. The scale of the levy exceeded all expectations and caught the Swiss business elite off guard. In a call with executives on Monday, one of Switzerland's chief negotiators said that they were still working on getting the overall tariff rate down. Their response to her was blunt: there's no substitute for the US market. Plans to move, such as Michel's, could still change if Switzerland gets Donald Trump to lower the tariff. But with so much at stake, some businesses are taking matters into their own hands. Machine-tool maker Netstal Maschinen AG is looking to reduce the share of Swiss components in its supply chain for products aimed at the US market, which accounts for approximately 15% of revenue. Orders from the US have already fallen 20% in the first half of 2025, CEO Renzo Davatz said. And it's likely to get worse if the Swiss don't get a better deal. A one-hour drive away in Weggis, Adrian Steiner, the CEO of Thermoplan AG, which builds coffee machines for Starbucks among other things, is sketching out plans to expand production capacities in the EU and the US, he said. However, he wants to wait for a final decision until the US tariffs kick in. One high-profile consumer product caught up in the Swiss tariffs is Nespresso. Though Nestle SA sells the coffee capsules all over the world, it only produces them in Switzerland. Most of its other product lines are made locally for their respective markets. The same holds true for many of Switzerland's international listed companies, including consumer brands such as Lindt & Spruengli AG and Logitech International AG, as well as industrial players like ABB Ltd and Holcim AG. After Trump's so-called Liberation Day announcements on tariffs, some firms without fully diversified production front-loaded shippings to the US. Shipping company Kuehne and Nagel International AG saw a slight increase in industry-wide shipments from Switzerland to US in the period. Switzerland is only a small part of their business. But for companies that waited, believing the government's optimistic messaging about a US deal, there was a shock last week. Now, there's no time. 'There is some movement to expedite loadings, but generally the timeline is too tight to load unplanned shipments into containers and to then gate in and get on a ship,' a spokesperson for Kuehne and Nagel said. 'Many hinterland manufacturers simply did not have time.' The risks to the Swiss economy are sizable. A 39% tariff rate might knock off 1% of Switzerland's gross domestic product over the medium term. While large multinational companies have some chance of reorienting supply chains and production to cope, it's much harder for smaller family-owned businesses. There's also the personal cost. Lobby group Swissmem says the tariffs put tens of thousands of Swiss jobs at risk. Among Switzerland's top companies, Roche Holding AG and Novartis AG are in the clear for now as pharmaceuticals are exempt. But that might soon change, with Trump warning he could announce tariffs on the sector in the next week. Some companies have tried to get ahead of the tariffs by frontloading early in the year. 'We transferred a lot of stock already in the first six months of this year when the story about the tariffs started,' watchmaker Swatch said in a statement. 'In such a situation, inventory is key and a competitive advantage.' With assistance from Naomi Kresge, Jennifer Creery, Noele Illien and Sonja Wind.
Free Malaysia Today
28-07-2025
- 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.
Bloomberg
24-07-2025
- Business
- Bloomberg
Nestle Sales Rise on Price Hikes, May Divest Vitamins Business
Nestle SA sales rose, fueled by price hikes that helped offset sluggish volumes, as the world's largest food company started a strategic review of its vitamins business. The maker of Nespresso and KitKat candy bars saw revenue grow 2.9% on an organic basis in the first half of the year, it said Thursday, in line with the average analyst estimate compiled by Bloomberg. Price hikes were the main reason for the increase, while real internal growth — a measure of volumes — expanded more slowly than analysts had expected.
Bloomberg
16-07-2025
- Business
- Bloomberg
Häagen-Dazs Maker Prices Debt for €4.4 Billion Payout to Owners
Froneri International Ltd., the maker of Häagen-Dazs ice cream, is wrapping up commitments for a debt deal to help fund one of the largest shareholder payouts on record, as its private equity co-owner looks to keep its stake in the company for longer. The UK-based manufacturer is close to pricing a €3.9 billion junk debt offering, the proceeds of which will fund a roughly €4.4 billion ($5.1 billion) payout to shareholders Nestlé SA and private equity firm PAI Partners.
Yahoo
23-06-2025
- Business
- Yahoo
Is Nestle (NSRGY) Stock Outpacing Its Consumer Staples Peers This Year?
Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Has Nestle SA (NSRGY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question. Nestle SA is one of 178 companies in the Consumer Staples group. The Consumer Staples group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Nestle SA is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for NSRGY's full-year earnings has moved 5.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the latest available data, NSRGY has gained about 21.7% so far this year. Meanwhile, the Consumer Staples sector has returned an average of 5.1% on a year-to-date basis. This means that Nestle SA is performing better than its sector in terms of year-to-date returns. Another stock in the Consumer Staples sector, Philip Morris (PM), has outperformed the sector so far this year. The stock's year-to-date return is 52.3%. The consensus estimate for Philip Morris' current year EPS has increased 4.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy). To break things down more, Nestle SA belongs to the Consumer Products - Staples industry, a group that includes 38 individual companies and currently sits at #180 in the Zacks Industry Rank. This group has lost an average of 3% so far this year, so NSRGY is performing better in this area. Philip Morris, however, belongs to the Tobacco industry. Currently, this 6-stock industry is ranked #44. The industry has moved +40.4% so far this year. Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Nestle SA and Philip Morris as they could maintain their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nestle SA (NSRGY) : Free Stock Analysis Report Philip Morris International Inc. (PM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
