Nestlé has lifted its first quarter turnover by 0.4 % to 21 billion Swiss francs (19.6 billion euro). It did achieve a 2.3 % autonomous growth, but exchange rate fluctuations and divestments had a sizeable impact.
Results within the guidance range
1 % of that autonomous growth came through price hikes, but its sales volume also grew 1.3 %. For its full fiscal year, the company expects a 2 to 4 % autonomous growth. Autonomous growth in emerging markets was 4.3 %, compared to just 0.8 % in developed markets. “Organic growth of 2.3% this quarter is within our full-year guidance range. We were encouraged by the growth in Asia and the resilience of consumer spending in Europe”, CEO Mark Schneider said.
In the EMEA region (Europe, Middle East and North Africa), turnover dropped 6.9 % to 4 billion Swiss francs (3.7 billion euro), because of divestments like the transfer its ice brands to the Froneri joint venture. Exchange rates also had a 2.7 % negative impact on turnover, with pricing almost level.
In the Americas turnover grew 2.6 %, partially thanks to 1.8 % in price increases. Nestlé sold less candy and pet products in the United States and Brazil is still a difficult country for the company. Mexican turnover continues to grow, but at a slower pace than before.
