Nestle Set to Eclipse Rivals' Sales Growth on Europe Resistance
Comment of the Day

August 10 2010

Commentary by Eoin Treacy

Nestle Set to Eclipse Rivals' Sales Growth on Europe Resistance

This article by Tom Mulier for Bloomberg may of interest to subscribers. Here is a section
The maker of Nespresso and Hot Pockets convenience meals may raise its commodity price inflation forecast, Alex Molloy, an analyst at Credit Suisse, wrote. Arabica coffee futures have gained 24 percent and wheat contracts have risen 44 percent this year. Chief Executive Officer Paul Bulcke repeated the company's forecast of a 2 percent to 3 percent increase on June 22.

The company may also clarify when it will receive the $28.1 billion payment from Novartis AG for its stake in Alcon Inc., the maker of Opti-Free contact lens cleaners, wrote Jon Cox, an analyst at Kepler Capital Markets. Nestle said in February it expected the cash in the third quarter. Nestle Chief Financial Officer Jim Singh said in June it would be in the second half.

Nestle said in June it will buy back 10 billion francs of shares through mid-2011. The company will probably propose another buyback of 15 billion francs to 25 billion francs, possibly when it reports nine-month results, Jean-Philippe Bertschy, an analyst at Bank Vontobel, wrote.

The maker of Gerber baby food and PowerBar supplements for athletes said April 22 it expects its food and beverage business to have higher organic sales growth in 2010 than the 3.9 percent last year. The company also expects an improvement in its earnings before interest and taxes as a percentage of sales at constant currency rates.

Eoin Treacy's view The maker of Nespresso and Hot Pockets convenience meals may raise its commodity price inflation forecast, Alex Molloy, an analyst at Credit Suisse, wrote. Arabica coffee futures have gained 24 percent and wheat contracts have risen 44 percent this year. Chief Executive Officer Paul Bulcke repeated the company's forecast of a 2 percent to 3 percent increase on June 22.

The company may also clarify when it will receive the $28.1 billion payment from Novartis AG for its stake in Alcon Inc., the maker of Opti-Free contact lens cleaners, wrote Jon Cox, an analyst at Kepler Capital Markets. Nestle said in February it expected the cash in the third quarter. Nestle Chief Financial Officer Jim Singh said in June it would be in the second half.

Nestle said in June it will buy back 10 billion francs of shares through mid-2011. The company will probably propose another buyback of 15 billion francs to 25 billion francs, possibly when it reports nine-month results, Jean-Philippe Bertschy, an analyst at Bank Vontobel, wrote.

The maker of Gerber baby food and PowerBar supplements for athletes said April 22 it expects its food and beverage business to have higher organic sales growth in 2010 than the 3.9 percent last year. The company also expects an improvement in its earnings before interest and taxes as a percentage of sales at constant currency rates.

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