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


Arket Brussels opens: discover H&M's latest concept

14/09/2017

On Friday 15 September, H&M Group’s new store formula opens its doors on the Guldenvlieslaan in Brussels. The press got a sneak preview and discovered a surprising mixture of fashion, interior design and food. 

Nordstrom opens store without storage

13/09/2017

American fashion chain Nordstrom is to trial a new store formula in Los Angeles next month, in which customers will only be able to get advice and try out clothing. Purchases can be picked up at the store at a later date.

Primark benefits from weaker British economy

12/09/2017

Irish fashion chain Primark takes full advantage of the weak British economy, which prompted its parent company AB Foods to adjust its full-year forecast. The chain will also continue its expansion plans.

Participatiemaatschappij Vlaanderen invests in FNG

11/09/2017

Government investment fund Participatiemaatschappij Vlaanderen (PMV) will invest 15 million euro in fashion group FNG in return for 5 % of its shares. The money will go towards international expansion.

Gap Inc will focus on Old Navy and Athleta

08/09/2017

American fashion company Gap will alter its internal strategy and turn its attention to Old Navy and Athleta. Gap and Banana Republic, which both received the most attention up until now, will have to step aside.

Global Fashion Group cuts losses

08/09/2017

Global Fashion Group, the fashion group founded by investment group Kinnevik and Rocket Internet, managed to lower its losses even more in the second quarter. On top of that, turnover grew more than 25 %.

Back to top