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


Walmart acquires clothing chain Bonobos

19/06/2017

American department store chain Walmart acquired clothing chain Bonobos for 310 million dollars (280 million euro). It now has full control over more than thirty stores and a web shop.

Trimmed down Nike wants to tap into market trends faster

16/06/2017

Nike wants to trim down, saying goodbye to 2 % of its staff. It has 70,700 employees worldwide, which means about 1,400 jobs will be cut.

Turnover and profit increase for Inditex

16/06/2017

Spanish fashion group Inditex experienced a strong first quarter, with a 14 % turnover increase to 5.569 billion euro and an 18 % profit increase to 654 million euro.

Ice-Watch is looking for a partner

14/06/2017

Belgian watch company Ice-Watch is for sale, although owner Jean-Pierre Lutgen is currently looking for a minority shareholder, preferably someone from the industry.

Saks OFF 5TH to arrive in the Netherlands this summer

12/06/2017

American fashion store chain Saks OFF 5TH did not miss its European debut: hundreds of customers waited in line for the opening of its store in Düsseldorf. A first store in the Netherlands will follow later this summer.

Intersport invests in online branch

09/06/2017

Sports chain Intersport will invest more in eCommerce in the next few years, to catch up to its competitors. By 2020, it should generate a “substantial part of its turnover online”.

Back to top