0803 GMT - Nestle is expected to deliver a profit margin this year in line with its guidance of 16% or more, given the resilient performance of its coffee and chocolate confectionery businesses, RBC Capital Markets analysts James Edwardes Jones and Wassachon Udomsilpa say in a note. Nestle's coffee and chocolate confectionery segments account for around 30% of the group's total sales and the recent commodity inflation surge must have added intense pressure on their profitability, the analysts say. However, both categories have shown resilience over the last 20 years, and the powdered and liquid beverages business hasn't posted a sales volume decline since at least 2003. For 2025, RBC anticipates real internal growth--Nestle's metric for sales volume--in powdered and liquid beverages and a 4% decline in chocolate confectionery, with price inflation growth of 6% and 8%, respectively. (michael.susin@wsj.com)
(END) Dow Jones Newswires
February 24, 2025 03:03 ET (08:03 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.