Nestlé reports 2.6% organic growth as business restructuring continues
Nestlé has reported organic growth of 2.6% across the business, according to its latest nine-month financial figures.
The Swiss food and drinks giant enjoyed particular success in emerging markets (5.1%), with growth in established areas at 0.8%.
The company recorded 1.9% organic growth in Europe, Middle East and North Africa, with particularly strong performance in its coffee and pet care divisions.
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Sales for the company as a whole slipped by 0.4% to 65.3bn CHF, however, while ongoing restructuring costs and related expenses are likely to hit Nestlé's upcoming profits.
"Improving our efficiency is a key priority," commented Mark Schneider, Nestlé CEO. "We have identified further opportunities to accelerate our margin improvement, leading to a further increase in restructuring and related expenses in 2017.
"Consequently, we now expect our trading operating profit margin to decrease by 40-60 basis points. The development of our underlying trading operating profit margin is fully in line with our expectations for 2017."
In recent weeks, Nestlé has acquired several companies including Blue Bottle Coffee and Sweet Earth Foods.
The company has also announced plans to open a new infant formula plant in Russia as it tries to target high-growth markets including coffee, bottled water, and infant nutrition.