Nestlé first-quarter sales: 7.2% organic growth, full-year outlook confirmed
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Nestlé first-quarter sales: 7.2% organic growth, full-year outlook confirmed
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* Sales of CHF 21.4 billion, 7.2% organic growth, 2.8% real internal growth
* 3.1% organic growth in developed markets, 13.0% organic growth in emerging
markets
* Full-year outlook unchanged: organic growth of 5-6%, improved margin and
underlying earnings per share in constant currencies
Paul Bulcke, Nestlé CEO: "As anticipated, 2012 is already confirming itself to
be a challenging year. In many developed markets where consumer confidence is
low, the trading environment is subdued whilst in most emerging markets,
conditions remain dynamic and rich in growth opportunities. Our past and present
investments, and continuing innovation, have enabled us to deliver good growth
in the first quarter. This, together with the pricing effect for the rest of the
year and a likely improved raw material environment in the second half, allows
us to confirm our full-year outlook of delivering 5-6% organic growth together
with an improvement in the year-end margin and underlying earnings per share in
constant currencies."
Vevey, 20 April 2012 - In the first three months of 2012, sales increased by
5.6% to CHF 21.4 billion. Organic growth was 7.2%, composed of 2.8% real
internal growth and pricing of 4.4%. Acquisitions net of divestitures, added 3%
to sales, whilst foreign exchange had a negative impact of 4.6%.
Business Review
Our three geographies contributed positively to the first quarter's growth: the
Americas achieved organic growth of 6.8%, Europe delivered 3.4% and Asia,
Oceania and Africa 12.2%. Our business grew 13.0% in emerging markets and 3.1%
in developed markets. This performance reflects the contrasting market
conditions in the developed and emerging worlds: the trading environment in many
developed markets with low consumer confidence is sluggish whilst conditions in
most emerging markets remain dynamic and rich in growth opportunities.
Zone Americas
Sales of CHF 6.5 billion, 6.2% organic growth, -0.4% real internal growth
* The North American market continued to be impacted by weak consumer
sentiment with declining growth in a number of categories where pricing was
higher, including frozen food. From a growth perspective soluble coffee was
our strongest category, and we gained share also in pizza and chocolate.
Nescafé performed well, and Coffee-Mate Natural Bliss, launched in April
2011, continued to build good momentum in the liquid coffee whitener
segment. Petcare also grew and gained market share with strong performances
in Friskies, Purina ONE Beyond and Beneful Baked Delights.
* Latin America achieved double-digit growth, with good performances in both
Brazil and Mexico. The chocolate, coffee, biscuit and ice cream categories
all performed strongly in the region. Petcare also grew by double-digits
with Purina Pro Plan doing well.
Zone Europe
Sales of CHF 3.6 billion, 2.3% organic growth, 0.2% real internal growth
* In Western Europe we continued to achieve growth in most markets including
Great Britain, France, Italy, the Iberian peninsula and Switzerland. Nescafé
performed well across the region, whilst Herta continued to grow strongly in
France, as did Maggi in the UK following the Juicy launch there in 2011. The
petcare business did well across the region.
* In Eastern Europe, we achieved good growth in Ukraine, Romania and the
Adriatic region. Russia's performance was impacted by a realignment of our
distribution networks aimed at improving future performance.
* There were strong achievements in many of the Zone's categories: chilled
culinary and frozen pizza all grew well. The Zone's growth platforms were
key contributors, in particular Nescafé Dolce Gusto, and in petcare, Purina
Felix.
Zone Asia, Oceania and Africa
Sales of CHF 4.6 billion, 11.4% organic growth, 7.2% real internal growth
* The Zone's emerging markets grew strongly in the first quarter, and realised
higher prices. Greater China, South Asia, Africa and the Middle East all
achieved double-digit growth. We continued to expand our distribution for
all consumer segments from popularly positioned products to premium. Strong
brand performances included Maggi in Africa, Nescafé in China, and Milo. The
new partnerships in China (Yinlu and Hsu Fu Chi) performed to expectations.
* Growth in Japan and Oceania was constrained by the strong 2011 comparatives
and prevailing economic conditions. KitKat performed well in Japan and Maggi
in Oceania.
* Many of the Zone's product categories contributed well with double digit
growth in chocolate, ambient culinary, dairy, powdered and ready-to-drink
beverages.
Nestlé Waters
Sales of CHF 1.6 billion, 8.0% organic growth, 5.0% real internal growth
* The North American business showed strong growth, building on its momentum
in 2011. There were good performances from Nestlé Pure Life, which grew
double-digit, and the premium international brands S. Pellegrino and
Perrier. Regional brands such as Poland Spring and Ice Mountain grew
solidly.
* The European business grew well with France, the UK, Germany and Italy the
highlights. The international brands, including Vittel, were strong, as were
local brands such as Buxton in the UK.
* The emerging market business where Nestlé Pure Life is our key brand grew
double-digit.
Nestlé Nutrition
Sales of CHF 1.9 billion, 5.8% organic growth, 2.0% real internal growth
* Infant Nutrition performed well globally, its growth building on a
particularly strong start to 2011. The division's dynamic growth in Asia,
Africa and Latin America more than compensated for the impact of slower or
declining birth rates in many developed markets. Infant formula and infant
cereals, with a high exposure to emerging markets, were the growth engines.
The meals and drinks business, which has a greater exposure to developed
markets, also contributed positively.
* Performance Nutrition had a good start to the year in the USA, following a
sharpened focus in 2011 on its core activities, products and consumers. Its
international businesses continued to perform well. Weight management
continued to be affected by a high level of competitive activity and weak
consumer spending in the USA. The recent launches in Europe made steady
progress.
Other
Sales of CHF 3.3 billion, 10.4% organic growth, 6.9% real internal growth
* Nestlé Professional's performance was driven by investment in its growth
pillars both in emerging and developed markets. Its growth was positive in
all three zones, with emerging markets growing double-digit. The beverage
business's focus on premium and super-premium solutions drove growth, whilst
the food business was driven by a strong performance of culinary flavour
solutions.
* Nespresso continued to deliver organic growth of around 20%, with consumer
demand growing around the world. The highly popular Limited Edition Kazaar
coffee was relaunched successfully and the global roll-out of boutiques
continued with openings in Doha, Innsbruck and Seoul. The Nespresso retail
network is expected to exceed 300 boutiques by the end of the year.
* Nestlé Health Science started its second year well, with North America,
Latin America and Asia as highlights. The 2011 acquisitions performed in
line with expectations.
* Joint ventures: Cereal Partners Worldwide's strong emerging market
performance was balanced by slower growth in developed markets. The
realignment of Beverage Partners Worldwide to focus more on developed
markets, mainly in Europe, is changing the joint venture's growth profile.
Its brands in faster growth emerging markets will now be managed by the
Nestlé zones. Our pharmaceutical joint ventures had a solid start to the
year, with positive growth.
Outlook
As anticipated, the trading environment in 2012 is challenging. The good growth
in the first quarter together with the pricing effect for the rest of the year
and a likely improved raw material environment in the second half, allows us to
confirm our full-year outlook of delivering 5-6% organic growth together with an
improvement in the year-end margin and underlying earnings per share in constant
currencies.
Contacts
Media: Robin Tickle Tel.: +41 21 924 22 00
Investors: Roddy Child-Villiers Tel.: +41 21 924 36 22
Annex
First Quarter sales overview 2012
+---------------+--------------+--------------+--------------+-----------------+
| |Jan.-Mar. 2012|Jan.-Mar. 2011|Jan.-Mar. 2012| Jan.-Mar. 2012 |
| | Sales | Sales |Organic Growth| Real Internal |
| | in CHF | in CHF | (%) | Growth (%) |
| | millions | millions | | |
| | | | | |
| | | | | |
+---------------+--------------+--------------+--------------+--------------+--+
|By Operating Segment |
+---------------+--------------+--------------+--------------+--------------+--+
| | | | | |
| | | | | |
|· Zone Americas| | | +6.2 | -0.4 |
| |6'537 |6'398 | | |
+---------------+--------------+--------------+--------------+-----------------+
|· Zone Europe | | | +2.3 | +0.2 |
| |3'579 |3'704 | | |
+---------------+--------------+--------------+--------------+-----------------+
|· Zone Asia, | | | +11.4 | +7.2 |
|Oceania, Africa|4'588 |3'787 | | |
+---------------+--------------+--------------+--------------+-----------------+
|Nestlé Waters | | | +8.0 | +5.0 |
| |1'552 |1'495 | | |
+---------------+--------------+--------------+--------------+-----------------+
|Nestlé | | | +5.8 | +2.0 |
|Nutrition |1'877 |1'872 | | |
+---------------+--------------+--------------+--------------+-----------------+
|Other | | | +10.4 | +6.9 |
| |3'256 |3'005 | | |
+---------------+--------------+--------------+--------------+--------------+--+
|Total Group | 21'389 | | | |
| | |20'261 |+7.2 |+2.8 |
+---------------+--------------+--------------+--------------+--------------+
|By Product |
+---------------+--------------+--------------+--------------+--------------+
|Powdered and | | | | |
|liquid |4'671 |4'425 |+10.5 |+4.7 |
|beverages | | | | |
+---------------+--------------+--------------+--------------+--------------+
|Water | | | | |
| |1'553 |1'496 |+8.1 |+5.0 |
+---------------+--------------+--------------+--------------+--------------+
|Milk products | | | | |
|and ice cream |4'230 |3'773 |+8.5 |+1.3 |
+---------------+--------------+--------------+--------------+--------------+
|Nutrition & | | | | |
|HealthCare |2'518 |2'424 |+6.1 |+3.1 |
+---------------+--------------+--------------+--------------+--------------+
|Prepared dishes| | | | |
|and cooking |3'396 |3'472 |+1.5 |-1.4 |
|aids | | | | |
+---------------+--------------+--------------+--------------+--------------+
|Confectionery | | | +7.1 | +4.6 |
| |2'476 |2'227 | | |
+---------------+--------------+--------------+--------------+--------------+
|PetCare | | | +7.7 | +4.6 |
| |2'545 |2'444 | | |
+---------------+--------------+--------------+--------------+--------------+
|Total Group | 21'389 | | +7.2 | +2.8 |
| | |20'261 | | |
+---------------+--------------+--------------+--------------+--------------+
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Source: Nestlé S.A. via Thomson Reuters ONE
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Datum: 20.04.2012 - 01:17 Uhr
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