Swiss franc and European price war hold Nestlé back | RetailDetail

Swiss franc and European price war hold Nestlé back

Swiss franc and European price war hold Nestlé back

Swiss food concern Nestlé's turnover growth in the first 9 months of 2014 has failed to live up to the expectations. Price pressure and a strong Swiss franc have affected the group which owns brands like Nescafé, KitKat and Vittel.

4.5 % organic growth

The largest food manufacturer in the world managed a 66.2 billion Swiss franc (54.8 billion euro) turnover in the past 9 months, 3 % lower than in the same period last year. The reasons for the drop sound familiar: low consumer faith has limited Nestlé's price hike options in Europe, while a strong Swiss franc has had a huge negative impact.

 

The underlying numbers are positive however: excluding exchange rate fluctuations (- 7.5 %) and purchases (- 0.1 %), it has managed a 4.5 % organic growth, slightly below analysts' expectations at + 4.7 %. All regions have contributed to the positive numbers: Europe grew 1.4 %, North and South America 5.1 % and Asia, Oceania and Africa grew 6.5 %.

 

"In a volatile global trading environment where there are no tailwinds, we achieved good broad-based growth", CEO Paul Bulcke said. The company will stick to its previously-stated turnover growth forecast (+ 5 %) for 2014 and a profit increase (excluding exchange rate fluctuations).

Questions or comments? Please feel free to contact the editors


Isabel Marant opens first Dutch store

24/05/2018

Fashion brand Isabel Marant opened its very first Dutch boutique in Amsterdam. It is located in the P.C. Hooftstraat, in a former McGregor store.

Zara opens new flagship store with holograms and robots

18/05/2018

Zara’s remodeled flagship store in Stratford (London) welcomes customers with holograms, robot arms and iPad-powered employees. The store wants to unite the best of both the online and offline shopping world.

Komono wants to reach 10 physical stores this year

17/05/2018

Belgian accessory label Komono wants to double its number of physical stores to ten this year. “The stores are important to tell our story”, Anton Janssens and Raf Maes told De Standaard.

Hema has to pay Levi's millions

17/05/2018

Store chain Hema needs to pay a 4.4 million euro fine to jeans brand Levi’s after the latter went to court because Hema applied its V-shaped stitching to its own collection.

Suitsupply suffers losses because of expansion

15/05/2018

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

Starting this Friday, Belgium has its own national e-commerce event

15/05/2018

Move over, Black Friday! This week, Belgium launches its own national e-commerce event as Jack & Jones, Kiabi, La Redoute, Sarenza, Tape à l'Oeil and Veritas organise the first Belgian Friday.