Q2 organic growth 8.7, beats poll
H1 net profit hit by oneoffs, misses poll
Raises growth outlook, slightly trims margin target
Shares indicated 1.2 higher

ZURICH, July 28 Reuters Nestle raised its fullyear sales growth forecast to 78 on Thursday and trimmed its margin guidance after cost inflation hurt the world39;s biggest food group less than expected and price increases boosted firsthalf organic sales growth.

Consumer goods businesses are facing soaring input costs for raw materials, energy and transportation, and though many consumers so far seem to accept the resulting price increases, delays in implementing them are squeezing companies39; margins.

Rivals Reckitt Benckiser, Unilever and Danone raised their fullyear revenue forecasts this week after steep price increases helped them to beat secondquarter sales expectations. 

Nestle, which makes KitKat chocolate bars Maggi soups among others, said its underlying trading operating profit UTOP margin dropped to 16.9 in the first half of 2022 from 17.4 a year earlier.

The company cited the lag before prices could be increased and the need for price rises to be balanced so consumers do not buy less or opt for cheaper brands.

We limited the impact of unprecedented inflationary pressures and supply chain constraints on our margin development through disciplined cost control and operational efficiencies, Chief Executive Mark Schneider said in a statement, adding that price increases had been implemented in a…