Nestlé Beats Analysts’ Expectations With 3.9 Percent Sales Lift
14 Apr 2016 --- Nestlé has reported a sales lift of 3.9 percent on a like-for-like basis in the first quarter, ahead of analysts’ expectation, helped by strong performances in Europe, South East Asia and Africa.
Nestlé was also helped by a recovery of its Maggi noodles business which has won back market share following a food scare, but was still impacted by “unfavorable comparatives”.
In June last year, regulators had banned the sale of Maggi in India due to concerns that Maggi contained high levels of lead – a suggestion denied by Nestlé.
Sales for the three months were CHF 20.9 billion ($21.6 billion) and chief executive Paul Buckle said Nestlé had gained market share in most of its markets.
He said: “As anticipated, the first quarter continued the positive momentum in real internal growth, with softer pricing. The strongest performances were in Europe, in South East Asia and in Africa as well as for Nescafe, Nespresso and petcare.”
“Our US frozen food business is progressing well. The trends seen over the last few quarters show the relevance of our investment and allow us to confirm our outlook for the year.”
Revenues from Nestlé’s powdered and liquid beverages rose 6.3 percent in the period, helped by marketing and advertising.
Nespresso maintained sold growth across all markets and continued to cement on its strong position in Europe. It was also helped by increasing consumer awareness of its VertuoLine coffee maker in the US.
Across Nestlé Nutrition, sales came in at CHF 2.6 billion ($2.7 billion), up 2.6 percent, helped by growth in emerging markets. Sub-Saharan Africa, Indonesia and Mexico all grew well in the period. But in the US, Nestlé’s move to new product formats hindered growth.
Revenues at Nestlé Waters were CHF 1.8 billion ($1.86 billion) in the period, up 5.3 percent. Key performers were premium brands Perrier, S Pellegrino, and Nestlé Pure Life.
19 Apr 2024 --- Nestlé has resisted investor proposals to reduce levels of fat, salt and sugar in products. During yesterday’s AGM, only 11% of shareholders...Read More
29 Mar 2024 --- This week in industry news, Azelis announced a new distribution agreement with Soy Austria, a manufacturer of natural, sustainable and soy-based...Read More
22 Feb 2024 --- Nestlé has released its full-year results for 2023, revealing robust organic growth of 7.2%, driven by pricing increases of 7.5%. Total...Read More
06 Feb 2024 --- The Chinese Lunar New Year, heralded as a year of hope, has prompted a wave of launches in the F&B industry, featuring an array of snacks,...Read More
19 Jan 2024 --- In industry news this week, Indian whiskey is bracing to disrupt the dominance of Scottish brands, Olam Agri gets a nod for being a top employer and...Read More