Nestlé reports good performance in confectionery and biscuits in 1st quarter 2007

In the first quarter of 2007, the Swiss food concern Nestlé SA, Vevey, reached consolidated sales of CHF 24.3 bn, up 6.4% over the same period last year. Reported sales benefited from a strong organic growth of 7.4%, of which 5.7% were from real internal growth and 1.7% from price increases. Food and beverages delivered 7.1% organic growth, consisting of 5.3% real internal growth and 1.8% price increases.


The business unit “Chocolate, confectionery and biscuits” reported 7.3% organic growth up to CHF 2.87 bn. Real intern growth (RIG) is 4.5%. All three Zones contributed to this performance, with the Americas achieving double-digit growth. The category capitalized on a successful Easter season, which came earlier this year than last, and is also benefiting from increasing consumer interest in lighter, wafer-based snacking alternatives and darker chocolate. Nestlé launched around 50 new dark chocolate products worldwide during the first quarter of 2007.


In the first quarter of 2007, the organic growth of Nestlé s total food, beverage and nutrition business amounted to 3.4% in Europe, 8.6% in the Americas and 10.8% in Asia, Oceania and Africa.
Zone Europe experienced organic growth of 1.9%. Demand in Western Europe continued to be weak, although the Nescafé Dolce Gusto launch is showing promising early results and the recovery of the UK confectionery business was reflected in market share gains. Eastern Europe delivered double-digit organic growth, with Russia doing particularly well and all product categories achieving double-digit growth there. Across the Zone, there were good performances in confectionery, soluble coffee, ice cream and chilled culinary products.


Zone Americas delivered a strong performance with organic growth of 7.2%. PetCare, confectionery, soluble coffee, culinary and ready-to-drink beverages did particularly well, and there were market share gains in most categories. Zone Asia, Oceania and Africa achieved organic growth of 10.3%, with strong double-digit perform­ances in the emerging markets of Asia, including China, as well as in Africa and the Middle East.