AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 127.04 No Change ▼ 0.00 (0%)
BOP 6.67 No Change ▼ 0.00 (0%)
CNERGY 4.51 No Change ▼ 0.00 (0%)
DCL 8.55 No Change ▼ 0.00 (0%)
DFML 41.44 No Change ▼ 0.00 (0%)
DGKC 86.85 No Change ▼ 0.00 (0%)
FCCL 32.28 No Change ▼ 0.00 (0%)
FFBL 64.80 No Change ▼ 0.00 (0%)
FFL 10.25 No Change ▼ 0.00 (0%)
HUBC 109.57 No Change ▼ 0.00 (0%)
HUMNL 14.68 No Change ▼ 0.00 (0%)
KEL 5.05 No Change ▼ 0.00 (0%)
KOSM 7.46 No Change ▼ 0.00 (0%)
MLCF 41.38 No Change ▼ 0.00 (0%)
NBP 60.41 No Change ▼ 0.00 (0%)
OGDC 190.10 No Change ▼ 0.00 (0%)
PAEL 27.83 No Change ▼ 0.00 (0%)
PIBTL 7.83 No Change ▼ 0.00 (0%)
PPL 150.06 No Change ▼ 0.00 (0%)
PRL 26.88 No Change ▼ 0.00 (0%)
PTC 16.07 No Change ▼ 0.00 (0%)
SEARL 86.00 No Change ▼ 0.00 (0%)
TELE 7.71 No Change ▼ 0.00 (0%)
TOMCL 35.41 No Change ▼ 0.00 (0%)
TPLP 8.12 No Change ▼ 0.00 (0%)
TREET 16.41 No Change ▼ 0.00 (0%)
TRG 53.29 No Change ▼ 0.00 (0%)
UNITY 26.16 No Change ▼ 0.00 (0%)
WTL 1.26 No Change ▼ 0.00 (0%)
BR100 10,010 Increased By 126.5 (1.28%)
BR30 31,023 Increased By 422.5 (1.38%)
KSE100 94,192 Increased By 836.5 (0.9%)
KSE30 29,201 Increased By 270.2 (0.93%)

Nestle reported slightly worse-than-expected half-year sales on Thursday, hurt by a recall of its Maggi noodles in India. The world's largest packaged food company, with brands like Nescafe, KitKat and Perrier, reported sales fell 0.3 percent to 42.84 billion Swiss francs ($43.87 billion) in the half year to June versus analysts' expectation for a dip of 0.1 percent to 42.95 billion, according to a Reuters poll. Net profit fell 2.5 percent to 4.52 billion francs, lagging analysts' average estimate for a 2.3 percent rise to 4.74 billion.
Like all consumer goods companies, Nestle has been grappling with slowing sales as once-hot economies like China and Brazil cool and European consumers continue to purchase cautiously. The company kept its outlook for the year. It had earlier forecast annual sales growth of around 5 percent, at the low end of its long-term model calling for 5 to 6 percent growth.
Organic growth was 4.5 percent in the first half. All consumer goods companies are suffering from sluggish markets world-wide but Nestle's particular problems involve its US frozen foods business where sales are falling amid weak consumer perceptions around the health of frozen food, and a pullback in China. In addition, Nestle's India unit last month reported a 20 percent slide in second-quarter sales, after its Maggi noodles were pulled off shelves due to safety concerns. "In India, our withdrawal of Maggi noodles resulted in negative organic growth which will continue into the second half. We are engaging fully with the authorities as we work to relaunch the product," it said on Thursday.

Copyright Reuters, 2015

Comments

Comments are closed.