1144 GMT - Nestle's plan to boost spending by itself might not be enough to lift long-term consensus expectations for sales growth, Citi analysts say in a research note. The Swiss food giant oultined a new plan that falls short of a radical transformation, Citi says. The company is targeting organic sales growth of more than 4% over the medium term, which compares with consensus estimates of 3.8% in 2026, according to Citi. On the plus side, Nestle's cost-savings program means higher spending on advertising and marketing will have a limited impact on earnings, the analysts say. The company's medium-term target of a trading underlying operating profit margin of more than 17.0% compares with consensus expectations of 17% for 2026. This means the target should be achievable when factoring in cost savings, Citi says. Shares fall 1.8%. (adria.calatayud@wsj.com)
(END) Dow Jones Newswires
November 19, 2024 06:44 ET (11:44 GMT)
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