Nestl. 1st Quarter Sales
23 Abril 2003 - 2:02AM
UK Regulatory
RNS Number:2585K
Nestle SA
23 April 2003
Press Release
Nestle: 4.6% Organic Growth In First Quarter
* Group-wide organic growth of 4.6%
* 6.3% sales increase at constant exchange rates
* Swiss franc sales down 7.5% as a result of a 13.8% negative foreign
exchange impact
Peter Brabeck, CEO of Nestle, said: "Our overall organic growth of 4.6% in a
difficult quarter, aggravated by late Easter, is mainly due to our successful
drive for innovation and our strong market positions. Our consolidated sales
clearly took a hit from the strong Swiss franc, but we expect this effect to
taper off in the course of the year. We are confident that the rest of the year
will bring an acceleration of growth and that we will therefore achieve our
stated objective of improving the Group's performance in constant currencies for
2003."
Vevey, April 23, 2003 - The Nestle Group's consolidated sales for the first
three months of 2003 amounted to CHF 19.7 billion. In constant currencies, sales
increased by 6.3%, reflecting organic growth of 4.6% (real internal growth 2.5%,
pricing and others 2.1%), as well as a small contribution from acquisitions, net
of divestitures. As a result of the strong Swiss franc, the adverse foreign
exchange effect was 13.8%.
Foreign exchange factor held back consolidated sales, and real internal growth
was impacted by the late Easter date and the competitive situation in Japan.
Additionally, in keeping with the Group's policy of ensuring margin
improvements, Nestle raised prices in several product categories to reflect cost
increases. Nevertheless, the Group expects its strong brands, its broad
distribution network and its capacity for innovation to lead to an improvement
in sales growth as the year goes on.
Sales by Management Responsibilities and Geographic Area
Jan.-March Jan.-March Organic Growth RIG
2003 2002 Jan.-March 2003 Jan.-March 2003
in CHF million % %
Zone Europe 6'778 6'628 +1.8 -0.4
Zone Americas 5'978 7'154 +4.8 +1.9
Zone Asia, Oceania 3'291 3'633 +3.2 +1.9
and Africa
Nestle Waters 1'719 1'740 +10.9 +10.7
Other Activities * 1'947 2'156 +9.4 +8.4
Total 19'713 21'311 +4.6 +2.5
* Mainly pharmaceutical products, joint-ventures and "Trinks" Germany
The growth rate in Western Europe reflects the importance of chocolate and ice
cream to that Zone, both of which were impacted by the late Easter date. There
should be some improvement, therefore, in the first half. Canada and the US
performed well, but there was some slowness in Latin America. Importantly,
however, the key markets of Brazil and Mexico both achieved positive RIG and
organic growth. Most Asian markets are growing at a good rate, with Greater
China outperforming its ambitious target of double-digit RIG. In Japan measures
were taken to improve the quality of sales in the ready-to-drink business. The
water business and Alcon again delivered good growth, capitalizing on their
leadership positions in their respective markets.
Sales by Product Group
Jan.-March Jan.-March Real Internal Growth
2003 2002 Jan.-March 2003
in CHF million %
Beverages 5'162 5'449 +6.0
Milk/Nutrition/Ice Cream 4'865 5'489 +1.1
Culinary 3'856 3'789 +3.4
Chocolate/Confectionery 2'365 2'623 -1.7
PetCare 2'257 2'653 -0.4
Pharma 1'208 1'308 +6.2
Total 19'713 21'311 +2.5
Among the product groups, beverages, especially soluble coffee and coffee mixes
under the Nescafe brand, and powdered beverages, under brands such as Milo and
Nesquik, did well, as did the specialty roast & ground coffees. There was good
progress also in the chilled and the frozen culinary sector; the recently
acquired Chef America achieved double-digit growth. The performance of chocolate
and confectionery was impacted by the late Easter, as well as by price
increases.
Nestle also expects the foreign exchange situation to improve in the coming
months, especially as the weakening of the major currencies vis-a-vis the Swiss
franc started in the second half of 2002. While 2003 will clearly be a
challenging year, the Group is well placed to further improve its organic growth
rate. Nestle will continue to focus on margin and further cash flow
improvements, pursuing its policy of long-term profitable growth. Barring major
unforeseen events, the Nestle Group expects to continue to improve its
performance in constant currencies in 2003.
Contact:
Media Francois-Xavier Perroud Tel.: +41-21-924 2596
Investors Roddy Child-Villiers Tel.: +41-21-924 3622
This information is provided by RNS
The company news service from the London Stock Exchange
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