Nestle raises full-year guidance post 8.1% H1 organic sales growth

Food giant Nestle raised its full-year organic growth guidance to 5-6% after strong demand for coffee lifted organic sales by a better-than-expected 8.1% in the first half of the year.

Food groups are grappling with surging commodity costs that are hitting margins, but Nestle, with well-known brands like Nescafe coffee or Purina pet food, may be better placed than others to offset them through price increases and efficiency gains.

Peer Unilever said last week it expected cost inflation to be in the high-teens in the second half of the year.

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