Business sell offs pushes Nestle profit by 19% in Q2

Nestle

Swiss foods giant, Nestle, said its net income for the net profit increased by 19.0% to CHF 5.8 billion and earnings per share increased by 21.4% to CHF 1.92.

The company said in the result that the increase was mainly the result of income from the disposal of businesses, lower taxes and improved operating performance.

Mark Schneider, Nestlé CEO said: “Our first-half results confirmed that our strategic initiatives and rigorous execution are clearly paying off. Nestlé has maintained the encouraging organic revenue growth momentum we saw at the beginning of the year. In particular, the United States and China markets showed a meaningful improvement. We were also pleased by the enhanced organic growth in our core infant nutrition category.

Our margin development is fully consistent with our 2020 target. We are creating value by pursuing growth and profitability in a balanced manner. In line with this approach, we have accelerated our product innovation efforts to drive future growth and initiated significant cost reduction efforts, in particular in Zone EMENA and at our Corporate Center.

As we look towards the second half of 2018, we expect further improvement in our organic revenue growth. Margin improvement is expected to accelerate with further benefits from our efficiency programs and more favorable commodity pricing.”