Nestle Faced With Difficult Sales Backdrop Until Second Half of 2025 -- Market Talk

Dow Jones
2024/12/17

0848 GMT - Nestle's investors will need patience as the company faces a challenging sales volume backdrop until the second half of 2025, Citi analysts say. The maker of KitKat chocolate bars and Nescafe coffee is expected to face sales growth deterioration, mainly due to price changes in coffee and confectionery, until the third quarter of next year.Margins for 2025 seem adequate and unlikely to see any upgrades until the company's portfolio review is over, the analysts say. A broader review of the company's portfolio could make Nestle more attractive to investors, but it would be difficult to find buyers in the short term for some of its most struggling assets, they add. The analysts cut Nestle's EPS estimate for 2025-26 by 1.8% a year, mostly due to higher finance costs. Shares are down 0.5%.(michael.susin@wsj.com)

 

(END) Dow Jones Newswires

December 17, 2024 03:48 ET (08:48 GMT)

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