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


Lubach: “Fair clothing is a matter of priorities”

15/11/2017

Ever since the Rana Plaza disaster, the clothing industry has clamoured for transparency in the clothing manufacturing branch, but Zondag met Lubach’s Arjen Lubach proved on Sunday that there is no actual transparency yet.

Fashion chain Canada Goose opens first European store

14/11/2017

Canadian fashion chain Canada Goose opened its first European store in London. The brand’s clothing has been in Europe for quite some time, but only at multi-brand stores up until now.

Desigual suffers turnover blow in first three quarters

14/11/2017

Spanish fashion chain Desigual suffered a blow in the first three quarters of 2017, with turnover  down more than 10 %. It mainly struggled in Europe, a region where it generates almost all of its turnover.

Two or three stripes on clothing are Adidas' property

13/11/2017

Swedish store chain H&M can no longer use parallel stripes on its (sports) clothing, because they resemble Adidas’ three stripes too much, according to a The Hague court.

Strong third quarter for Adidas

10/11/2017

Sports clothing manufacturer Adidas experienced a strong third quarter. Its growth was slower than in the previous quarter, but its operational profit exceeded analysts’ expectations.

Yoox Net-a-Porter grows but still failed to live up to expectations

09/11/2017

Online retailer Yoox Net-a-Porter’s third quarter like-for-like turnover grew 17.7 % to 481.8 million euro, which is not entirely what analysts had expected. Its growth slowed down in the United States and China in particular.

Back to top