Nestle profit, sales beat forecasts
Reuters, Zurich
Nestle's strong brands and price increases helped it boost sales and profits in the first half of the year despite higher raw material costs and tough market conditions in France, Germany and Italy. However, the higher commodities costs limited margin improvement and profit-taking sent shares in the world's biggest food company 1.3 percent lower to 353.50 Swiss francs on Wednesday. Comments from Wal-Mart Stores Inc that rising oil prices were hurting consumer spending also weighed on shares. Net profit at the maker of Maggi and Perrier rose to 3.68 billion Swiss francs ($2.92 billion) from 2.78 billion a year ago, restated to account for a switch to IFRS accounting rules. That compared with an average forecast of 3.499 billion francs in a Reuters poll of 14 analysts.
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