Nestle S.A reported an increase of up to 4.1 percent in global sales for the first nine months of the year, with the company earning a total of 82.8 billion Swiss francs, or $85.6 billion, up from 79.6 billion francs, or $82.5 billion.
Despite the up tick, the company still earned less than its estimates as the dollar slipped and resulted in significant losses by hurting Nestlé's international competitiveness. The world's largest food and drink company reports only half and full-year earnings.
Nestle, which is based in Vevey, Switzerland, saw sales growth across all regions and in all categories but the major boost came from its food and beverage sales that reached 77 billion francs, or $79.8 billion. The total revenue took a beating mainly because of the slumping value of dollar as the company failed to shore up its profits and ended up with a revenue decline of 2.7 percent.
The company has started reassessing its business concerns with many sales and acquisitions on the cards. It has already started realigning its portfolio over the past quarter with the sale of its residual stake in eye care company Alcon to Novartis. Nestle has also opened a new health science division, which it envisions will start developing food products with medicinal values.
Nestle shares were unable to weather the revenue dip and dropped 0.1 percent to trade at 53.00 francs, or $54.25. Analysts have expressed disappointment over the results as they were not expecting that the U.S. dollar would impact the earnings to such a degree.
