Nestle slims down full-year outlook after sales dip

FOOD giant Nestle scaled back its full-year outlook yesterday as a Maggi noodle recall in India impacted sales and undercalculated rebates in the US weighed on profits.

A Maggi noodle recall hit sales in India. Picture: AP

Sales dipped 2.1 per cent to SFr64.9 billion (£44bn) in the nine months to September. Organic or underlying growth, which is adjusted for currency movements, acquisitions and disposals, eased to 4.2 per cent in the period from 4.5 per cent in the first half.

The Swiss group trimmed its 2015 outlook to about 4.5 per cent, below its long-term aim for 5 to 6 per cent growth.

Chief executive Paul Bulcke said: “After a good performance in the first half of the year, we were impacted in the third quarter by exceptional events, with Maggi noodles in India and a rebate adjustment in Nestle Skin Health.

“Yet our real internal growth increased, reflecting broad-based positive momentum across our business and many of our markets. There was continued solid performance in Europe, Nestle Waters and Nestle Health Science.”

Earlier this month, the group confirmed it was in advanced talks to merge its international ice cream arm with R&R.