Group sales of CHF 82.8 billion, 6.1% organic growth, 4.5% real internal growth
Food and Beverages sales of CHF 77.0 billion, 5.7% organic growth, 4.2% real internal growth
Growth in all regions and categories, double-digit organic growth in emerging markets
Full-year Food and Beverages outlook unchanged: organic growth of around 5% combined with an EBIT margin increase in constant currencies
Paul Bulcke, Nestlé CEO: “Our performance is the result of clear strategic alignment and focus on execution throughout the whole organisation, both in developed and in emerging markets. Our ongoing efforts on the cost side combined with increased investment in our brands, innovation, capabilities and people have, as previously stated, prepared us well for the second half. Indeed, the first half’s growth momentum continued unabated in the third quarter, providing a good base for the full year as we face challenging comparatives in the final quarter. We therefore reconfirm that our Food and Beverages business will achieve organic growth of around 5% combined with an increase in EBIT margin in constant currencies for 2010 as a whole.” Vevey, 22 October 2010 – In the first nine months of 2010, Group sales amounted to CHF 82.8 billion, consisting of 6.1% organic growth, including 4.5% real internal growth. Foreign exchange impacted sales by -2.7%, whilst acquisitions, net of divestitures, added 0.7%. Overall, Group sales increased by 4.1%. Food and Beverages sales reached CHF 77.0 billion, consisting of 5.7% organic growth, including 4.2% real internal growth. Foreign exchange impacted sales by -2.8%, whilst acquisitions, net of divestitures, added 1.6%. Overall, Food and Beverages sales rose by 4.5%. The nine month sales reflect a continuation of the strong, broad-based growth seen earlier in the year, with the organic growth for both the Group and the Food and Beverages business unchanged from the first half.
The organic growth for all Food and Beverages operations was 5.5% in the Americas, 3.3% in Europe and 10.7% in Asia, Oceania and Africa. Western Europe and North America grew and emerging markets achieved around 11% organic growth.
Key drivers of this consistent performance included deeper distribution in emerging markets in support of our value-priced popularly positioned products (PPPs); a strong pipeline of targeted innovation combined with increased brand support; and the continued success of premium product initiatives around the world.
Corporate highlights Over the third quarter of 2010, we
completed the sale of our remaining shares in Alcon to Novartis, representing around 52% of Alcon's share capital, for USD 28.3 billion
announced the creation of Nestlé Health Science S.A. and the Nestlé Institute of Health Sciences to pioneer a new industry between food and pharma
launched the Nescafé Plan in Mexico City, announcing investments of CHF 500 million over ten years in coffee projects and doubling of direct coffee purchases
announced the establishment of an R&D Centre in India, mainly dedicated to the development of PPPs
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acquired Waggin’ Train, a leading marketer in the fast growing dog snacks segment based in the United States, as well as a majority participation in Malher Group in Guatemala, a marketer and distributer of culinary products and powdered beverages under brands such as Malher, Yus and Toki
inaugurated new facilities in emerging markets such as an infant cereal plant in Ghana and a CoffeeMate factory for Latin America and the Caribbean in Mexico
announced the investment of CHF 25 million in a new shared service center in L’viv, Ukraine, to consolidate our financial and Human Resources services in Central and Eastern Europe
Outlook Our performance year-to-date, even as we face challenging comparatives in the final quarter, enables us to reconfirm our full-year guidance, that the Food and Beverages business will achieve organic growth around 5% as well as an improvement in the EBIT margin in constant currencies. |
