Global food company Nestle (OTC: NSRGY) has had to deal with changing consumer trends that have threatened its ability to sustain long-term growth. Yet having identified that potential obstacle, Nestle has worked hard to come up with a turnaround strategy to reinvigorate its core business while adapting to changing conditions.
Nestle recently released its third-quarter financial report, which concentrates largely on how well the company has done in promoting sales of its key products. Yet there was a lot more information in Nestle's news release, including some exciting news that will put more money in shareholders' pockets over the next three years.
Nestle's sales figures for the first nine months of the 2019 fiscal year were generally favorable. Total reported sales climbed 2.9% to 68.4 billion Swiss francs. Organic growth was even stronger, coming in at 3.7%. Of that, about 0.7 percentage points came from Nestle's pricing power, with the remaining 3 percentage points stemming from real internal growth. Net acquisitions added 0.7 percentage points to Nestle's overall growth rate, but adverse currency impacts reduced reported sales by 1.5 percentage points.