Nestlé SA reported nine-month sales that missed analysts’ estimates as deflationary pressure eroded revenue in Europe, providing a setback for the world’s biggest food company in reaching its full-year growth target.
Revenue rose 4.5 per cent on an organic basis, the Vevey, Switzerland-based maker of Gerber baby food said today. Analysts expected a 4.7 per cent gain, according to the median of 16 estimates compiled by Bloomberg News.
Nestlé is struggling to lift prices in Europe. Unilever, the maker of Magnum ice cream bars, last month said market growth has slowed to less than 2 per cent, compared with 4 per cent in 2013. Danone said yesterday currency volatility was one of the reasons it’ll be harder to achieve its full-year targets.
“Despite the tough environment, in view of our year-to-date performance, we are still aiming for organic growth of around 5 per cent for 2014 with improvements in margins, underlying earnings per share in constant currencies and capital efficiency,” Chief Executive Officer Paul Bulcke said in the statement.
Bloomberg News, edited by ESM
