Nestlé's growth cancelled out by Swiss Franc hausse

The rising prices of raw materials continue to leave their mark on announcements by major FMCG producers. Of the latest two, Henkel was successful in charging their customers for the higher costs, while Nestlé's profits plummeted. 

Good Henkel result, but under expectations

Henkel's organic second-quarter sales rose 6.3% to 3.95 billion euro, raising the year-wide expectation to a 5% rise for 2011. Profits for the German company went up 8% to 514 million euro. The quarterly turnover was slightly lower than analysts had expected, causing CEO Kasper Rorsted to say that "with intense competition continuing, an increase in raw material prices and growing uncertainties in the markets, the economic environment will remain challenging".

Huge growth cancelled out

Nestlé's figures on the other hand were hindered severely by the Swiss Franc's exchange rate (+17% in one year compared to the euro). Net profit went down 13.7% to 4.5 billion euro (-13.7%) as prices for raw materials went up. Nestlé's organic turnover went down 5% to 39 billion euro, but the Swiss company had its largest turnover growth in years when exchange rates are ignored (+7.5%) thanks to its excellent results in Asia (+13.3%). Paul Bulcke, Nestlé's Belgian CEO, took heart from this last result and claimed to expect another 5 to 6% growth in the next months.

 

The rising prices of raw materials continue to leave their mark on announcements by major FMCG producers. Of the latest two, Henkel was successful in charging their customers for the higher costs, while Nestlé's profits plummeted. 

Good Henkel result, but under expectations

Henkel's organic second-quarter sales rose 6.3% to 3.95 billion euro, raising the year-wide expectation to a 5% rise for 2011. Profits for the German company went up 8% to 514 million euro. The quarterly turnover was slightly lower than analysts had expected, causing CEO Kasper Rorsted to say that "with intense competition continuing, an increase in raw material prices and growing uncertainties in the markets, the economic environment will remain challenging".

Huge growth cancelled out

Nestlé's figures on the other hand were hindered severely by the Swiss Franc's exchange rate (+17% in one year compared to the euro). Net profit went down 13.7% to 4.5 billion euro (-13.7%) as prices for raw materials went up. Nestlé's organic turnover went down 5% to 39 billion euro, but the Swiss company had its largest turnover growth in years when exchange rates are ignored (+7.5%) thanks to its excellent results in Asia (+13.3%). Paul Bulcke, Nestlé's Belgian CEO, took heart from this last result and claimed to expect another 5 to 6% growth in the next months.

 
Questions or comments? Please feel free to contact the editors


Turnover for 100 largest web shops in Belgium grows 13.5 %

16/11/2017

Turnover for the top 100 web shops in Belgium grew 13.5 % from 3.7 to 4.2 billion euro. Digital sales for food items and household products have increased considerably.

Barbie rejects G.I. Joe & co (for now?)

16/11/2017

Toy giant Mattel has allegedly turned down competitor Hasbro’s bid, according to press agency Reuters’ anonymous sources close to the deal. It is still unclear what the repercussions would be.

Henkel increases full-year turnover forecast

15/11/2017

For the first time ever, Henkel will pass the fifteen billion euro turnover milestone for the first nine months of the year. The company will also increase its turnover and profit forecast on the back of these excellent performances.

Singles' Day alters the global retail calendar, even here

14/11/2017

Move aside Christmas turnover, Singles’ Day is the world’s largest shopping holiday – by far. Alibaba generated a 22 billion euro turnover in a single day and even Bol.com took advantage of the day. Are we heading to a new retail calendar?

Avoid long waiting lines at cash registers thanks to Google Maps?

13/11/2017

Google will add a new option to its Maps app on 23 November: users will then be able to assess how much time they will lose at the cash register.

This is how online retailers can beat Amazon Prime

13/11/2017

Market research firm SmarterHQ says Amazon’s bond with consumers is razor-thin and they would quickly abandon their subscription if the advantages proved to be too meagre. This should present opportunities to the competition.

Back to top