Nestle Announces Profits Along With a Weakened Future Outlook

The largest food group in the World, Nestle (PINK:NSRGY) in a statement said that the company will find it hard to improve its margin in the developed countries due to the weakening consumer sentiment as it announced an increase its outlook for the current year’s sales growth after beating the forecasts for the first 3 quarters.

The prices of key raw materials like coffee, milk, sugar  and grains are still maintaining the high note in spite of some small falls in the recent times maintaining the pressure on the Swiss company’s profit margin. Nestle also said that it is eyeing for an increase in its margin this year and compared to the company’s more confident tone regarding the half year results in August, it seemed to have softened a bit on its optimism regarding the margins.

The Chief Executive Officer of Nestle, Paul Bulcke while addressing a news conference said that the company expects to outperform slightly against its long term organic growth range of about 5 to 6 percent in spite of facing input cost pressures and the company will continue to strive hard for an improvement in the margin in constant currencies.

The company’s sales in the past nine months had increased to 7.3 percent slightly exceeding the predicted 7.1 percent. I was down from the 7.5 percent it had reported in the half yearly sales. The company has managed to achieve a 4.1 percent growth in volumes and has increased the prices by 3.2 percent in between the 3 quarters. The company’s share close down 0.5 percent at 51.30 francs. The company’s shares have fallen by 6 percent until now in this year.

On the other hand, Nestle has announced the launch of its new luxury chocolates which can be ordered online as per the customer’s preferences. This new chocolate range will be the perfect personalized chocolate said the director for Nestlé’s Chocolate Center for Excellence, Cedric Lacroix.

The Chocolate Center of Excellence based in Broc, Switzerland was launched in 2009. The demand for premium chocolates has stayed intact even during the period of global economic turmoil and Nestle maintains its position as the global leader in dark chocolate.

The company also said that the consumers can order a box containing 5 tasting chocolates online and rate their preferences inline as per the instructions. These preferences will be used to make the chocolate according to the consumer’s preference and will be sent directly to him.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.