First Read Nestlé Feedback from management sell-side meeting

研报英文原文证据摘录

First Read Nestlé Feedback from management sell-side meeting

Global Research

27 July 2026ab

First Read

EquitiesNestlé

Feedback from management sell-side meeting Switzerland

Food Products

12-month rating Neutral

Positive tone as management highlighted the steady progress made by the

company and confidence in, step by step, reaching group’s objective of 2%+ RIG 12m price target CHF80.00

and 4%+ OG. Key takeaways: 1) Management encouraged by underlying

performance in Q2; factors that were called out (retailer dispute in Europe, retailer

Price (24 Jul 2026) CHF80.67destocking in US petcare, short term volume impact from HSD price increase of

Starbucks in the US) each shaving off 10-20bps of group’s RIG – suggests underlying RIG RIC: NESN.S BBG: NESN SW

of 2.0-2.3% ex Waters in Q2; 2) Sees Q2 discrepancy between sell-in and sell-out in US

Trading data and key metrics

petcare as more temporary than structural; 3) Pleased with strong Q2 RIG performance

in emerging markets but would anticipate some normalization going forward; 4) 52-wk range CHF86.17-71.00

Anticipates flattish RIG development in China in H2 (reflecting declining cat growth and Market cap. CHF208b/US$254b

lacklustre market share development); 5) Productivity savings in H1 slightly ahead of Shares o/s 2,573m (REG)

plan (accelerated delivery motivated by conflict in the middle East); 6) Clear commitment Free float 97%

to group’s dividend policy (as in annual increase in CHF). Avg. daily volume ('000) 3,633

Avg. daily value (m) CHF292.8

CEO thoughts 10mo in: Making progress on the strategy, confident NESN will get to Common s/h equity (12/26E) CHF35.0b

2+% RIG and 4+% OG and stay there: improving marketing capabilities, adjusting the P/BV (12/26E) 5.9x

portfolio, improving cashflows and extracting savings.