Nestlé sales increase by 3.4%
During the first nine months of 2008, consolidated sales of the Nestlé Group amounted to CHF 81.4 billion, an increase of 3.4 per cent in Swiss francs over the same period last year. Reported sales benefited from a very strong organic growth of 8.9...
During the first nine months of 2008, consolidated sales of the Nestlé Group amounted to CHF 81.4 billion, an increase of 3.4 per cent in Swiss francs over the same period last year.
Reported sales benefited from a very strong organic growth of 8.9 per cent, including 3.4 per cent real internal growth. Acquisitions, net of divestitures, added 2.5 per cent more to Group sales. The currency effect reduced Group sales by 8 per cent due to the strength of the Swiss franc compared to most other currencies. The Group's food and beverages business, with sales of CHF 75.8 billion, was the main contributor to growth, achieving organic growth of 8.9 per cent, including real internal growth of 3 per cent.
In the first nine months of 2008, the organic growth of Nestlé's total food and beverages business amounted to 5.4 per cent in Europe, 9.5 per cent in the Americas and 14.2 per cent in Asia, Oceania and Africa. These figures include the Zones, globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nespresso, as well as the Food and Beverages joint ventures.
Developing markets continued to experience good performances with an organic growth of 16.8 per cent with all regions performing well. The Group's long-standing presence in these markets, combined with strong market positions and ubiquitous distribution, are some of the key success factors.
Developed markets also continued to achieve good performances with organic growth of 5.1 per cent. The Group's success in developed markets is increasingly driven by its capacity to innovate with new added-value products and services as well as continuously renovate the existing portfolio. Moreover, the premium and luxury end of the market continues to provide strong growth, with brands such as Nespresso, Häagen Dazs and Gourmet pet food performing well.
Europe witnessed sales of CHF 21 billion, 6 per cent organic growth and 2.1 per cent real internal growth. This zone's strong momentum continued in the second half of the year, with key Western European markets and businesses achieving good levels of organic growth, particularly Great Britain and the pan-European PetCare business. Organic growth in Eastern Europe continued to accelerate. The zone's bigger categories, namely chocolate, culinary, petcare and soluble coffee, achieved high single-digit organic growth.
In a company statement Nestlé said it was committed to becoming the recognised global leader in nutrition, health and wellness and the reference for sustainable financial performance in its industry.
"In view of Nestlé's strong third quarter, the company foresees organic growth of about 8 per cent for the full year, higher than expected at the first half, together with an improvement in EBIT margin, both reported and constant currency. Thereafter, Nestlé is committed to delivering the Nestlé model, consisting of 5 to 6 per cent organic growth together with constant currency margin improvement, year after year," it said.
Reported sales benefited from a very strong organic growth of 8.9 per cent, including 3.4 per cent real internal growth. Acquisitions, net of divestitures, added 2.5 per cent more to Group sales. The currency effect reduced Group sales by 8 per cent due to the strength of the Swiss franc compared to most other currencies. The Group's food and beverages business, with sales of CHF 75.8 billion, was the main contributor to growth, achieving organic growth of 8.9 per cent, including real internal growth of 3 per cent.
In the first nine months of 2008, the organic growth of Nestlé's total food and beverages business amounted to 5.4 per cent in Europe, 9.5 per cent in the Americas and 14.2 per cent in Asia, Oceania and Africa. These figures include the Zones, globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nespresso, as well as the Food and Beverages joint ventures.
Developing markets continued to experience good performances with an organic growth of 16.8 per cent with all regions performing well. The Group's long-standing presence in these markets, combined with strong market positions and ubiquitous distribution, are some of the key success factors.
Developed markets also continued to achieve good performances with organic growth of 5.1 per cent. The Group's success in developed markets is increasingly driven by its capacity to innovate with new added-value products and services as well as continuously renovate the existing portfolio. Moreover, the premium and luxury end of the market continues to provide strong growth, with brands such as Nespresso, Häagen Dazs and Gourmet pet food performing well.
Europe witnessed sales of CHF 21 billion, 6 per cent organic growth and 2.1 per cent real internal growth. This zone's strong momentum continued in the second half of the year, with key Western European markets and businesses achieving good levels of organic growth, particularly Great Britain and the pan-European PetCare business. Organic growth in Eastern Europe continued to accelerate. The zone's bigger categories, namely chocolate, culinary, petcare and soluble coffee, achieved high single-digit organic growth.
In a company statement Nestlé said it was committed to becoming the recognised global leader in nutrition, health and wellness and the reference for sustainable financial performance in its industry.
"In view of Nestlé's strong third quarter, the company foresees organic growth of about 8 per cent for the full year, higher than expected at the first half, together with an improvement in EBIT margin, both reported and constant currency. Thereafter, Nestlé is committed to delivering the Nestlé model, consisting of 5 to 6 per cent organic growth together with constant currency margin improvement, year after year," it said.