Nestlé: growth dynamic with some deceleration in the second quarter

According to the company, pricing contributed 1.0% with some deceleration in the second quarter owing to the deflationary environment in Europe and lower pricing in Brazil. Organic growth was 3.4% excluding businesses under strategic review. The year-on-year growth acceleration was led by the United States and Brazil. Underlying trading operating profit increased by 10.1% to CHF 7.8 bn. The underlying trading operating profit margin reached 17.1%, an increase of 100 basis points in constant currency and on a reported basis.

All product categories posted positive growth. The largest contributions came from Purina PetCare, coffee and infant nutrition. Sales in the confectionery category decreased to CHF 3.45 bn (6M-2018: CHF 3.63 bn). Organic growth in this product group reached 2.5%, RIG was 3.3%.