Nestle Net Profit Declines; Won't Renew L'Oreal Shareholder Pact
15 Febbraio 2018 - 08:18AM
Dow Jones News
By Anthony Shevlin
Nestle SA (NESN.EB) said Thursday that an impairment charge
pressured 2017 net profit lower and that it would keep its options
open regarding its L'Oreal SA (OR.FR) stake.
The food and beverage company said net profit was 7.2 billion
Swiss francs ($7.72 billion), compared with CHF8.53 billion a year
earlier. An analyst consensus provided by Nestle had estimated net
profit of CHF9.72 billion.
Net profit was hit by a charge mainly related to a goodwill
impairment for its skin-health business. The company nevertheless
proposed a dividend of CHF2.35, up 5 Swiss centimes.
Sales rose 0.4% to CHF89.8 billion and organic sales growth was
2.4%, it said. Analysts had expected sales of CHF90.02 billion and
organic sales growth of 2.6%.
Nestle said it wouldn't renew a shareholders agreement for its
23.12% L'Oreal stake with the Bettencourt family, which holds a
major stake in the French company, "in order to maintain all
available options for the benefit of Nestle's shareholders." It
said however that it remains committed to L'Oreal and has
confidence in the company's management and strategy.
Nestle also said it is exploring a potential sale of its Gerber
Life Insurance business.
Nestle expects 2018 organic sales growth of between 2% and 4%
and expects restructuring costs of CHF700 million.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com
(END) Dow Jones Newswires
February 15, 2018 02:03 ET (07:03 GMT)
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