Nestle Mulls Selling Peanut-Allergy Treatment Palforzia; Outlines 2025 Targets - Nestle (OTC:NSRGY)

Nestle ADR NSRGY outlined 2025 targets at its investor seminar in Barcelona.
Nestlé expects to return to an underlying trading operating profit margin range of 17.5% - 18.5% by 2025, following the margin impact of a sharp increase in cost inflation in 2021 and 2022.
The company also expects to deliver an annual underlying EPS growth range of 6% - 10% in constant currency over the period 2022 to 2025.
FY22 Outlook: The company currently expects organic sales growth of 8% - 8.5% (prior view around 8%). It continues to expect underlying earnings per share in constant currency and capital efficiency to increase.
Nestlé also decided to explore strategic options for Palforzia, the peanut allergy treatment, citing slower-than-expected adoption by patients and healthcare professionals.
The company expects to complete the review in the first half of 2023.
"We did have high hopes for this business,” Bloomberg reported citing CEO Mark Schneider. Instead of a blockbuster, Palforzia looks more like a niche therapy, he added.
Buyback: Nestlé also confirmed its ongoing program to repurchase CHF 20 billion of its shares over the period 2022 to 2024.
Nestlé aims to maintain its practice of increasing its dividend year-on-year in Swiss francs.
Price Action: NSRGY shares closed higher by 0.11% at $119.40 on Monday.
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