Market Overview

Nestle CEO Talks 2019 Performance, Outlook For 2020 And Beyond

Share:
Nestle CEO Talks 2019 Performance, Outlook For 2020 And Beyond

Nestle (OTC: NSRGY) reported full-year results for 2019, highlighted by a 3.5% organic growth and a 1.2% sales increase. Nestle CEO Mark Schneider was a guest on "Bloomberg Markets: European Open" to talk about the company's performance and his outlook for 2020 and beyond.

'Super Pleased'

Nestle is "super pleased" with its organic growth as it matched management's guidance and is expected to continue growing in 2020 and beyond, Schneider said. In fact, growth can accelerate above 3.5% but in a year or two and ultimately achieve a 4% to 6% goal.

Coronavirus And China

Nestle has more than 30 factories in China and the "large majority" are now operating as normal, he said. Food and nutritional products are "essential" to the people and the company will do its best to operate in a difficult and constrained environment.

The exact financial impact on Nestle can't be determined at this time, especially since the disruption started during the "low" period coinciding with the Chinese New Year, he said.

Aside from the virus, Nestle is doing "really well" in premium categories in China, the CEO said. The Chinese consumer is in good financial shape to enjoy higher-end items.

L'Oreal

Nestle owns a 23% stake in L'Oreal and the luxury segment has seen some difficulties in Asia. Schneider said he sees no reason to divest its stake and Nestle doesn't "day trade" with L'Oreal's stock. In fact, he said Nestle remains "very, very happy shareholder" after a four-decade-long relationship.

Only "if needed" would Nestle tap into its stake in L'Oreal, perhaps to help finance an acquisition, he said.

Plant-Based Food

Nestle doesn't see itself falling behind in the food business at a time when food delivery apps continue to grow and give consumers better access to food. The CEO said its grocery exposure is a strong business but it has plans to make it even strong through plant-based and meat-alternative food products. These new and emerging food items will be counted on "re-energizing and re-defining" the multi-billion dollar industry.

Related Links

Nestle CEO Discusses Sustainability Program

Food Giant Nestle Invests $2B In Ambitious Green Goal

Photo by inma · lesielle on Unsplash

Posted-In: Bloomberg China coronavirus foodEarnings News Guidance Media

 

Related Articles (NSRGY)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com