Nestlé reports growth, confirms outlook22 Apr 2019
For the first three months of the year, Nestlé has reported organic growth of 3.4%, with continued strong real internal growth (RIG) of 2.2%.
Pricing increased by 1.2%, with significant improvement in Brazil and the United States. Total reported sales increased by 4.3% to CHF 22.2 billion (3M-2018: CHF 21.3 billion).
Net acquisitions had a positive impact of 1.2% and foreign exchange reduced sales by 0.3%.The company said that its portfolio management is fully on track: the strategic reviews of Nestlé Skin Health and Herta charcuterie (cold cuts and meat-based products) are expected to be completed by mid- and late 2019, respectively.Full-year guidance for 2019 was confirmed, with continued improvement in organic sales growth and underlying trading operating profit margin towards Nestlé’s 2020 targets. Underlying earnings per share in constant currency and capital efficiency are expected to increase.Mark Schneider, Nestlé CEO, said: "We are pleased with Nestlé’s solid organic sales growth in the first quarter, building on our full-year 2018 momentum. Our increased speed, innovation for a changing world and execution focus are clearly paying off. We confirm our outlook for the year.""In the quarter, we announced the launch of a new range of 24 premium coffee products under the Starbucks brand. The Nestlé and Starbucks teams did an outstanding job and developed these products in just 6 months."He added: "The notion of business as a force for good resonates very strongly inside Nestlé. Starting with this report, we will highlight each quarter how Nestlé creates shared value. We will begin by showing how Nespresso delivers on its commitment to quality and sustainability."
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