Swiss food concern Nestlé failed to meet expectations once again despite a 4.2 % organic growth in 2015. Analysts had predicted a 5 % growth at least, which is why they are disappointed with the current state of affairs.
Plenty of pressure from exchange rates
Nestlé’s 2015 turnover reached 88.8 billion Swiss francs (80.5 billion euro), down from 91.6 billion Swiss francs (83 billion euro) last year. The biggest culprit were the exchange rates, which pressured the results for 7.4 %. Autonomously, there was a 4.2 % growth.
Net profit also dropped from 14.9 billion Swiss francs (13.5 billion euro) in 2014 to 9.5 billion Swiss francs (8.6 billion euro).
Asian struggle
Like many other companies, Nestlé is struggling to achieve Asian growth as its 2015 turnover only grew 0.5 %. The company was greatly affected by a major recall after an Indian scandal involving its Maggi noodles.
Nestlé’s North American performance was good, with a 5.5 % growth, thanks to the relaunch of frozen food brands Lean Cuisine and Stouffer’s, which now have more healthy food options.
Its forecast for 2016 is to achieve a similar 4 % autonomous turnover growth, which is lower than its long-term goal of 5 to 6 %. Nestlé expects prices to face pressure once again in 2016.
