Nestle's Spending Plan Might Fail to Lift Sales Expectations -- Market Talk

Dow Jones11-19

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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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%. 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The Swiss food giant oultined ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NSRGY","symbol_name":"雀巢","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2484179109","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484179109","pubTimestamp":1732016640,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"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%. 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