Nestle's Organic Growth Likely to Be Offset by Swiss Franc Strength -- Market Talk

Dow Jones
May 30, 2025

0603 GMT - Nestle is facing rising currency headwinds, with recent strength in the Swiss franc relative to the dollar likely to offset the company's organic sales growth, Berenberg analysts say in a research note. "Since the start of 2025, the Swiss franc has strengthened by 10% versus the U.S. dollar, and our model suggests the currency translation effect to Nestle's group sales in 2025 will be [minus] 4.2%, more than offsetting organic sales growth of 3.4%," the analysts say. Currency headwinds are set to hurt the Swiss food company's profitability as well, they add. Berenberg cuts its target price on Nestle to 87 francs from 90 francs. Shares closed 1.35% lower at 87.51 francs on Thursday and are up nearly 17% since the start of 2025. (adria.calatayud@wsj.com)

 

(END) Dow Jones Newswires

 

Nestle's shares closed 1.35% lower at 87.51 francs on Wednesday, with markets in Switzerland closed Thursday for a holiday. "Nestle's Organic Growth Likely to Be Offset by Swiss Franc Strength -- Market Talk," at 0603 GMT, misstated the day.

 

(END) Dow Jones Newswires

May 30, 2025 02:29 ET (06:29 GMT)

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