Earnings

Nestle posts jump in first-half profit as US, China markets improve

Key Points
  • The Vevey, Switzerland-based vendor of Hot Pockets, Coffee-mate and Purina pet care products said net profit rose to 5.83 billion Swiss francs ($5.86 billion), up from nearly 4.9 billion francs a year earlier.
  • CEO Mark Schneider said "our strategic initiatives and rigorous execution are clearly paying off."
Nestle chocolate products are displayed on the shelves of a Kroger supermarket in Decatur, Georgia.
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Nestle is citing "increased momentum" in the United States and China as the Swiss food and drinks giant reported a 19-percent jump in net profit in the first half of the year.

The Vevey, Switzerland-based vendor of Hot Pockets, Coffee-mate and Purina pet care products said net profit rose to 5.83 billion Swiss francs ($5.86 billion), up from nearly 4.9 billion francs a year earlier.

Nestle on Thursday attributed the jump to the disposal of businesses, lower taxes and improved operating performance.

Sales rose 2.3 percent to 43.9 billion Swiss francs, and organic growth, or growth not linked to acquisitions, climbed 2.8 percent. Nestle projected organic growth would improve to 3 percent for the full year.

CEO Mark Schneider said "our strategic initiatives and rigorous execution are clearly paying off."