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Nestlé 9-month Organic Sales Up 3.7%; Confirms FY Guidance - Quick Facts

Nestlé (NSRGY.PK,NSTR.L) reported an organic growth of 3.7 percent in sales for the nine months of fiscal 2019, with real internal growth (RIG) of 3.0 percent and pricing of 0.7 percent. The company said the organic growth was supported by strong momentum in the United States and Purina PetCare. Looking forward, Nestlé affirmed its fiscal 2019 outlook.

For the nine month period, total reported sales increased by 2.9 percent to 68.4 billion Swiss francs from 66.4 billion francs, prior year. Net acquisitions had a positive impact of 0.7 percent and foreign exchange reduced sales by 1.5 percent.

For 2019, Nestlé continues to project organic sales growth around 3.5 percent and the full-year underlying trading operating profit margin at or above 17.5 percent. Underlying earnings per share in constant currency and capital efficiency are expected to increase.

Nestlé's Board has decided to distribute an amount of up to 20 billion Swiss francs to shareholders over the period 2020 to 2022. The distribution is expected to be primarily in the form of a share buyback program commencing in January 2020. The Board may consider distributing part of the total amount as one or more special dividends over the period 2020 to 2022.

Mark Schneider, Nestlé CEO, stated: "We continue to see good momentum in our largest market, the United States and very strong growth for Purina PetCare globally. During the third quarter, the roll-out of Starbucks products continued, now reaching 34 countries. Our portfolio transformation is fully on track."

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