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Nestle SA RegShs. Ser. B Spons (ADR)(OTCMKTS:NSRGY) was a notable decliner in Friday’s trading session. The stock plunged by close to 2% on the back of high volumes considered to be a bearish signal. The stock has been in a strong downtrend ever since hitting an intra-day high of $79.5. Traders believe the stock could take support near the $72.10 level in the near term. The momentum oscillators for the stock continue to trend lower indicative of the strong momentum present to the sell side. The relative strength index for the stock is forming lower lows pointing towards inherent weakness.

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Nestle SA Reg Shs. Ser. B Spons (ADR)(OTCMKTS:NSRGY) announced financial results for the first nine-month period of 2015. The biggest highlight of these financial results was the organic growth of 4.2% in sales. As per the report, the sales for the first nine months totaled CHF 64.9 billion with 2% real internet growth.

Insights of Financial Results

Although the overall organic growth in sales was 4.2%, it totaled 2.2% in developed countries and 6.8% in emerging markets. Based on these numbers, the company also announced the outlook for the remaining year. It predicts the overall organic growth to remain around 4.5% and a decent growth in underlying earnings per share and growth.

The senior management of the company is delighted to announce these numbers and hope that they will continue to bolster in the coming months. According to Paul Bulcke, CEO, Nestle, the first half of 2015 was exceptionally well for the company; however, during 3Q2015 Nestle got hit by many unforeseen events. The backlash on Maggie Noodles in India affected Nestle’s hopes badly, yet it managed to grow internally across the globe.

Nestlé Health Science and Nestlé Waters performed well during the third quarter and supported the core operations of Nestle effectively. The sales didn’t grow as per expectations in China, but its performance in North and Latin America in terms of frozen food was better than what everybody had expected. Overall, the organic growth couldn’t surpass Nestle management’s expectations; hence, the company has decided to reduce the yearly outlook to 4.5%.

Group Results

Nestle group continued to touch newer milestones in three of its major markets, showing organic growth of 6.2% in Americas, 1.1% in Asia, sub-Saharan Africa and Oceania, and 4.0% in Middle East, Europe and North Africa.

The overall sales in Americas accounted for CHF 18.5 billion, 1.2% internal growth and 5.8% organic growth. Sales in Europe, Middle East and North Africa was CHF 12.0 billion, with 2.5% real internal growth and 4.1% organic growth. Nestle recorded CHF 10.5 billion sales in Asia, sub-Saharan Africa and Oceania regions, with -1.4% real internal growth and -0.5% organic growth.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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