Nestlé expects operating margin to fall up to half a percentage point
Zürich — Nestlé said it expected its operating margin to slip 40 to 60 basis points in 2017 due to higher restructuring costs from a faster overhaul, and said full-year organic sales growth should be in line with the 2.6% seen in the first nine months. But the world’s biggest food company said its underlying margin, which strips out costs of closing factories and other charges from its revamp, was set to improve. Makers of packaged foods are under pressure to review their business models and brand portfolios to satisfy consumers’ appetite for fresh, healthy, local foods, while at the same time improving returns to silence increasingly vocal activist investors.
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