{"text":[[{"start":6.6,"text":"Nestlé’s shares suffered their biggest drop since 2020 after the Swiss food group’s sales disappointed and profit margins were squeezed by high coffee and cocoa prices. "}],[{"start":17.1,"text":"Shares in the KitKat maker fell almost 7 per cent on Thursday after it said it expected its operating profit margin would be “broadly similar” in the second half of the year to the first after previously forecasting stronger margins. "}],[{"start":31.200000000000003,"text":"The negative investor reaction comes as Nestlé’s new leaders attempt a sweeping turnaround to rectify years of underperformance. New chief executive Philipp Navratil and chair Pablo Isla, the former Inditex boss, have simplified the group’s sprawling organisational structure and sold off parts of its portfolio. "}],[{"start":52.5,"text":"Shares had risen in the run-up to earnings over expectations that the group’s second-quarter results would show a 2 per cent rise in sales volumes. "}],[{"start":60.8,"text":"However, sales volumes rose only 1.8 per cent in the second quarter of the year, in line with consensus analyst estimates but lower than some had forecast. "}],[{"start":70.75,"text":"“Given the rally, we don’t think the [volume] print is quite good enough,” said Barclays analyst Warren Ackerman. "}],[{"start":77.25,"text":"The company’s operating profit margin fell 0.1 percentage points year on year to 16.4 per cent in the first half, held back by higher coffee and cocoa prices. Operating profit fell 2.8 per cent to SFr7.1bn ($8.7bn). "}],[{"start":95.8,"text":"Nestlé said its operating margin was also affected by increased marketing spend, tariffs and its global infant formula recall earlier this year. The group has been forced to issue recalls for products potentially contaminated with cereulide, a toxin that can cause nausea and vomiting."}],[{"start":114.15,"text":"Bernstein analyst Callum Elliott said the change to margin guidance for the rest of 2026 “takes the shine off” Nestlé’s earnings. "}],[{"start":123,"text":"Despite the margin downgrade and weaker than expected volumes, Nestlé reported better than expected revenues in the second quarter of the year. Sales rose 3.7 per cent, driven by price rises of 1.9 per cent. "}],[{"start":136.55,"text":"Nestlé also announced it had formed a multibillion-euro joint venture for its water business with private equity firm Platinum Equity in a deal that will raise €3bn for the Nespresso maker. "}],[{"start":148.20000000000002,"text":"The new company, called Peranel, will be a 50-50 joint venture valued at €4.9bn. It will comprise 30 brands sold in 120 countries, including San Pellegrino, Perrier and Acqua Panna. "}],[{"start":170.60000000000002,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784808538_4843.mp3"}