H1 sales up 2.1% organically (Il Sole 24 Ore Radiocor) - Bern, 25 Jul - Swiss food giant Nestle said that its first half net revenue fell 2.7% to 45 billion francs reflecting a 4.4% adverse currency effect and a 0.4% negative impact from divestures.

Organically, revenue was up 2.1% with a positive real internal growth (RIG) of 0.1% in the first half and 2.2% in the second quarter in all zones and categories.

Pricing was 2.0% decelerating to 0.6% in the second quarter, largely reflecting a high base of comparison in 2023 and increased growth investments.

By geography, organic growth was driven by Europe and emerging markets. In developed markets, organic growth was 1.0%, led by pricing with negative RIG. In emerging markets, organic growth was 3.7%, driven by pricing and close to flat RIG.

Underlying trading operating profit decreased by 0.8% to 7.8 billion for a margin of 17.4%, up 30 basis points on a reported basis and 40 basis points in constant currency.

Net profit was flat at 5.6 billion for a margin of 12.5%.

Earnings per share increased by 1.8% to 2.16 on a reported basis. In constant currency, underlying earnings per share increased by 3.3% to 2.51 francs The increase was mainly the result of positive organic growth and improved underlying trading operating profit margin. On a reported basis, underlying earnings per share decreased by 1.0% to 2.40 francs, largely due to the impact of exchange rates.

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(RADIOCOR) 25-07-24 08:15:03 (0137) 5 NNNN