Lowest Q1 sales for Nestlé in four years | RetailDetail

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


Zalando expands collaboration with German retailers

16/02/2018

Zalando has further expanded its collaboration with physical retailers in Germany. Shoe stores were already able to ship through Zalando and now clothes stores can too.

Kiabi opens largest Belgian store in Westland Shopping Center

15/02/2018

French clothing chain Kiabi will open its fifth Belgian store in the Westland Shopping Center in Anderlecht. This will become its largest Belgian store to date, spread across 1,800 sqm.

H&M warns for difficult 2018

15/02/2018

Swedish fashion group H&M warns that 2018 could be yet another difficult year for the company. It is working to improve online sales, but store turnover will most likely continue to drop.

Gucci is main stimulus for Kering's profit

13/02/2018

French luxury group Kering proved to be very successful in 2017: its turnover grew 25 % and its net profit more than doubled compared to the year before.

Decent fourth quarter growth for Urban Outfitters

12/02/2018

Following positive third quarter signs, Urban Outfitters has also presented decent fourth quarter growth. For its full fiscal year, the company took just a small step forward.

Puma breaks through 4 billion euro turnover milestone

12/02/2018

In its past fiscal year, German sports brand Puma surpassed the four billion euro turnover milestone for the first time ever. That was thanks to a 16 % turnover growth compared to the year before.

Back to top