Nestlé: Less impact from the Brazilian strike than expected
Nestlé: (NEUTRAL, Fair Value CHF84 (+3%))Less impact from the Brazilian strike than expected
Nestlé posted 2.6% organic sales growth in Q2 vs our estimate: +1.6%. This reflected better trends in Americas and Europe/Middle East/Africa, part of which cannot be considered as an underlying improvement (more volumes in Europe due to the agreement with AgeCore, less impact from the Brazilian strike). This being said, we slightly revise upwards our forecasts for the year. We now expect 2.9% organic sales growth (vs +2.6% previously) and 40bp EBIT margin expansion (vs +10bp). We maintain our Neutral recommendation. Our Fair Value is unchanged at CHF84.
Nestle is a holding company which is based in Switzerland. Through its subsidiaries and allied companies, Co. is engaged in the food processing industry. Co.'s product portfolio has seven categories, Powder and Liquid Beverages, Nutritional and Health Science, Milk products and ice cream, Prepared dishes and cooking aids, PetCare, Confectionery and Water.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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