Nestle SA RegShs. Ser. B Spons (ADR)(OTCMKTS:NSRGY) was a notable decliner in Friday’s trading session. The stock plunged by close to 2% on the back of high volumes considered to be a bearish signal. The stock has been in a strong downtrend ever since hitting an intra-day high of $79.5. Traders believe the stock could take support near the $72.10 level in the near term. The momentum oscillators for the stock continue to trend lower indicative of the strong momentum present to the sell side. The relative strength index for the stock is forming lower lows pointing towards inherent weakness.
Nestle SA Reg Shs. Ser. B Spons (ADR)(OTCMKTS:NSRGY) announced financial results for the first nine-month period of 2015. The biggest highlight of these financial results was the organic growth of 4.2% in sales. As per the report, the sales for the first nine months totaled CHF 64.9 billion with 2% real internet growth.
Insights of Financial Results
Although the overall organic growth in sales was 4.2%, it totaled 2.2% in developed countries and 6.8% in emerging markets. Based on these numbers, the company also announced the outlook for the remaining year. It predicts the overall organic growth to remain around 4.5% and a decent growth in underlying earnings per share and growth.
The senior management of the company is delighted to announce these numbers and hope that they will continue to bolster in the coming months. According to Paul Bulcke, CEO, Nestle, the first half of 2015 was exceptionally well for the company; however, during 3Q2015 Nestle got hit by many unforeseen events. The backlash on Maggie Noodles in India affected Nestle’s hopes badly, yet it managed to grow internally across the globe.
Nestlé Health Science and Nestlé Waters performed well during the third quarter and supported the core operations of Nestle effectively. The sales didn’t grow as per expectations in China, but its performance in North and Latin America in terms of frozen food was better than what everybody had expected. Overall, the organic growth couldn’t surpass Nestle management’s expectations; hence, the company has decided to reduce the yearly outlook to 4.5%.
Group Results
Nestle group continued to touch newer milestones in three of its major markets, showing organic growth of 6.2% in Americas, 1.1% in Asia, sub-Saharan Africa and Oceania, and 4.0% in Middle East, Europe and North Africa.
The overall sales in Americas accounted for CHF 18.5 billion, 1.2% internal growth and 5.8% organic growth. Sales in Europe, Middle East and North Africa was CHF 12.0 billion, with 2.5% real internal growth and 4.1% organic growth. Nestle recorded CHF 10.5 billion sales in Asia, sub-Saharan Africa and Oceania regions, with -1.4% real internal growth and -0.5% organic growth.
