bloomshorts Nestle’s Profit Decline Amid China Market Struggles
Nestle announced a 10.3% drop in first-half profits to 5.1 billion Swiss francs ($6.4 billion), with sales dipping by 1.8% to 44.2 billion francs. The company cited higher cocoa and coffee prices and the strong Swiss currency as contributing factors.
China’s Impact on Growth
China’s sluggish domestic consumption has negatively impacted Nestle’s organic growth, with a 0.7 percentage point effect in the second quarter. Despite these challenges, the company reported a 2.9% quarterly organic growth, excluding currency effects.
Strategic Measures for Revival
Nestle is taking decisive actions to strengthen its business in Greater China and has launched initiatives to enhance its product offering and reduce costs. The company remains optimistic about achieving its 2025 guidance, despite increased headwinds.
