NESTLE S.A SPONS Stock Forum

As the Easter holidays approach, higher cocoa prices mean shoppers are paying far more for their chocolate eggs and bunnies. But that’s just the tip of the iceberg.
Higher prices in stores now reflect increases in cocoa in 2023. Since then, the rally has gone into overdrive, and cocoa has more than doubled in price already this year, making it the world’s hottest commodity.
In just the last three weeks, wholesale beans in New York have jumped mo...

Nestle's new biomass boiler marks a major stride towards its environmental objectives and sustainable commitments. This not only lessens their carbon footprint but also benefits the local community and conserves natural resources. It underscores Nestle Malaysia's commitment to high-quality, locally-made products.

Nestle's biomass power plant is a stride towards environmental sustainability and carbon emission reduction. Its success could inspire more industries to adopt green energy, promoting sustainability.

Nestle's CEO highlights core brands' role in driving growth and the potential of innovative products. However, he warns of persistent challenges like currency and commodity price fluctuations, subdued consumer sentiment, and inflation's impact on purchasing power. Yet, he remains confident in delivering resilient performance in FY24.

RBC analysts deem Nestlé's 2024 organic revenue growth target of 4% as realistic, but view its 2025 EBIT margin targets as ambitious. They anticipate a normalized cost environment and support Nestlé's plan to boost marketing in 2024, expecting R&D to remain a significant investment.

Analysts are skeptical about Nestle's price hikes and its strategy to regain sales volume. The focus is on enhancing market-share momentum and innovation for growth in 2024. Danone's volume growth narrative is seen more positively than Nestle's.

The decision to increase prices in response to inflationary pressures has negatively impacted Nestle's sales and customer base. The company's strategy to increase volumes and moderately increase profit margins in 2024 indicates a shift towards value enhancement for consumers.

Consumers are switching to competing brands due to the company's continued price hikes. Analysts and investors suggest a greater focus on marketing and innovation.

Despite sluggish food volume trends, Nestle is expected to increase marketing spend to drive innovation into 2024. Analysts predict a rise in the company's margins and a positive share price development.