Lowest Q1 sales for Nestlé in four years

Lowest Q1 sales for Nestlé in four years

Swiss food giant Nestlé has closed the first quarter of 2013 with a total of sales worth 21.9 billion Swiss francs (a bit over 18 billion euro), a rise of 5.4%. Without takeovers and fluctuations in the exchange rate, growth is only 4.3%: the lowest first quarter growth since 2009.

Sales below expectations

With those quarterly results, Nestlé remains below expectations: analysts had estimated sales of 22.5 billion francs and an organic growth of 4.7% In last year's first quarter, Nestlé’s sales grew by 7.2%.

 

“The beginning of the year reflects the cautiousness we showed in February”, says Paul Bulcke of Nestlé Belgium, while still confirming current predictions for the entire year. This means Nestlé is still aiming for an organic growth of 5 to 6% this year.

 

Once more “Europe in crisis”

Just like competitor Danone earlier this week,Nestlé points to the crisis in Europe, making the consumer spend less and cut corners where possible.

 

While the American market grew by 5.1% and the region Asia-Oceania-Africa even by 6.1%, the old continent only managed to scrape one percent extra together. Nestlé adds that the Benelux did have a good start, as opposed to France and Germany, who are only now starting to gain momentum.

 

“We also see progress in our North American activities and are expecting a stronger dynamic in the most important growth markets”, they say at the headquarters in Vevey.  The reference to growth markets is no coincidence: last quarter they had a growth of 8.4%, while Nestlé only grew 0.9% in the more “mature” markets.

 

Nutrition biggest grower

Nestlé Nutrition was the strongest branch of the company with a rise of 7.6% to 2.5 billion francs (about two billion euro). Nestlé Waters made the smallest progress: only 1.8% to 1.6 billion francs (circa 1.3 billion euro).

 

The other activities had a growth of 4.2% to 2.9 billion francs (about 2.39 billion euro). Nespresso was the biggest contributor, because of a “broader geographic foot print”.

Questions or comments? Please feel free to contact the editors


Hunkemöller wants to conquer Switzerland

17/08/2017

Dutch lingerie chain Hunkemöller aims to open a chain of physical stores in Switzerland, after having already opened a Swiss web shop in September 2016. The first physical store will open its doors in October.

Shoe brand Bally put up for sale

16/08/2017

Austrian investment firm JAB Holding wants to sell Swiss shoe brand Bally, hoping to get at least 600 million euro. The same company sold shoe brand Jimmy Choo not too long ago, as it wants to focus on its food brands henceforth.

Crocs loses patent battle

14/08/2017

Shoe manufacturer Crocs has lost a patent court case revolving around the shoe’s design. According to the American Patent & Trademark Office (USPTO), another company has had a similar design for much longer.

Coolcat's losses compound

14/08/2017

Dutch fashion chain Coolcat, part of entrepreneur Roland Kahn’s group, has not managed to lower its losses in 2016. On the contrary: its losses grew more than 50 % compared to the year before.

Zalando's growth once again surpasses 20 %

10/08/2017

German Zalando has achieved its 20 % growth target for the second quarter, but just barely. It still forecasts a 20 to 25 % growth for its full fiscal year.

Gucci files lawsuit against Forever 21

09/08/2017

Fashion label Gucci has decided to file a lawsuit against fashion chain Forever 21 in the United States. The case revolves around several pieces of clothing, all with a blue-red-blue or green-red-green ribbon. 

Back to top