Nestle delivered better-than-expected second-quarter results, with organic sales growing 3.7% in the quarter ended June 30, according to reports from Business Standard. The world's biggest packaged food company's organic sales, which exclude currency movement and acquisition impacts, exceeded analyst expectations of 3.6% growth. The company now expects full-year organic sales growth of 3-4%, upgrading from its previous target of 'around 3%'.
The company announced plans to raise €3 billion ($3.43 billion) from a joint venture with investment firm Platinum Equity for its waters and premium beverages business, as reported by Business Standard. Nestle and Platinum Equity will each own 50% of the joint venture, which will be named Peranel. This strategic move represents part of the company's ongoing portfolio reshaping under CEO Philipp Navratil, who has focused on improving growth and profitability through core brand focus.
According to Business Standard reports, Nestle expects its second-half underlying trading operating profit margin to be higher than the first half due to lower coffee and cocoa costs. The company's improved margin outlook reflects better cost management and operational efficiency gains from its strategic portfolio restructuring efforts.
