Nestle now expects sales to grow at least 3%, lower than the roughly 4% it had previously targeted. The world's biggest food company has struggled to win back market share after shoppers switched to cheaper alternatives.
Almost all of that growth came from higher pricing, which sharply slowed in the second quarter. Nestle's coffee business, boosted by the rising price of the commodity, was the highest contributor to organic growth, increasing in the mid-single digits.
"We are still in repairing mode," Chief Executive Officer Mark Schneider said...The gross margin will come under pressure in the second half because of higher coffee and cocoa prices, he added.
Schneider has turned to innovation...to convince investors that the company has room left to grow. Nestle will launch new products addressing consumer trends this year. The GLP-1 range will hit the shelves at the end of the third quarter.
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