Go back to the list Oct 19, 2018

Nestlé reports growth in-line with expectations


The key points of the report are as follows:

  • Nestlé achieved organic growth of 2.8%, with 2.3% real internal growth (RIG) and pricing of 0.5%, in line with expectations
  • Total reported sales increased by 2.0% to CHF 66.4 billion (9M-2017: CHF 65.1 billion). Net acquisitions had a positive impact of 0.1% and foreign exchange reduced sales by 0.9%
  • Further progress was made in positioning the portfolio towards attractive high-growth categories. Nestlé acquired the global perpetual license of Starbucks consumer packaged goods and foodservice products. The company also reached an agreement for the sale of Gerber Life Insurance Co. and has started to explore strategic options for Nestlé Skin Health.
  • Full-year guidance for 2018 was confirmed, with organic sales growth expected to be around 3%; underlying trading operating profit margin improvement in line with our 2020 target.

In Europe, Zone EMENA posted resilient RIG in the context of a low-growth environment, particularly in Western Europe. Nescafé growth was positive in a competitive market and in spite of difficult comparables. The Purina petcare, infant nutrition and professional businesses were the main contributors to growth across the Zone. Premium products had strong momentum in these categories, especially Gourmet cat food and NAN infant formula with Human Milk Oligosaccharides (HMOs). Confectionery posted positive growth with a strong performance from KitKat.

Speaking about the results, Mark Schneider, Nestlé CEO, said: “We are encouraged by the progress on our path of accelerated value creation. The nine-month sales show solid growth across most geographies and product categories. Our growth was supported by disciplined execution and faster innovation. We have reached significant milestones in portfolio management and are particularly pleased with the early closing of the Starbucks transaction. Our growth and efficiency initiatives put us on track to meet our full-year 2018 guidance and 2020 targets.”


Follow link for the full report.