Nestle lowers full-year guidance on quicker-than-expected price fall By Reuters

(Reuters) -Nestle reported half-year sales growth below analysts’ forecasts on Thursday and lowered its full-year organic sales growth guidance to at least 3% from about 4% previously.

The world’s biggest packaged food company managed to increase its volumes amid worries that price hikes would alienate shoppers.

The Swiss company expects pricing to come down faster than expected, prompting it to change its outlook.

Nestle’s organic sales rose 2.1% in the first half of 2024, below the average estimate of 2.5% growth in a company-provided consensus.

Its underlying trading operating profit was 7.8 billion Swiss francs ($8.84 billion), coming in line with the 7.81 billion francs seen in the company-provided consensus of 20 analysts.

($1 = 0.8828 Swiss francs)