Nestlé benefits from hamster purchases - growth stronger than expected

27-Apr-2020 - Switzerland

The Swiss food company Nestlé benefited in the first quarter from hamster purchases in the wake of the corona pandemic.

Photo by Frank Busch on Unsplash

Growth in the first three months was higher than experts had expected. However, the rise in the Swiss franc completely eroded the gains on the balance sheet. In addition, the sale of divisions had an impact, resulting in a decline in sales. Compared with the previous year, sales fell by 6.2 percent to 20.8 billion Swiss francs (around 20 billion euros), as the most valuable European company on the stock exchange announced in Vevey on Friday.

Organic growth - i.e. excluding currency and sales effects - amounted to 4.3 percent.

According to Nestlé, the impact of the corona pandemic on the Group's economic development cannot yet be assessed. Although it is still too early to assess the full impact of Covid-19, "we are maintaining our original outlook for the full year 2020 for the time being," it said. This forecast is based on sales growth in the current year, excluding currency and acquisition effects and operating margins. In addition, earnings per share adjusted for special effects should also increase.

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

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