Nestlé reports very strong organic growth in first quarter of 2008

In the first quarter of 2008, Nestlé SA, Vevey, reached consolidated sales of CHF 25.7 bn, up CHF 1.5 bn or 6.0% over the same period last year. Reported sales benefited from a very strong organic growth of 9.8%, including 4.5% real internal growth. Food and Beverages also delivered 9.8% organic growth, of which 4.2% consisted of real internal growth. Acquisitions, net of divestitures, added another 3.2% to group sales, primarily due to the acquisition of Gerber and Novartis Medical Nutrition in 2007. The net currency effect reduced reported group sales by 7% due to the strength of the Swiss franc compared to most other currencies.



Confectionery business unit reached sales of CHF 3.0 billion. That means 7.3% organic growth and 2.1% real internal growth. According Nestlé press release, the product group benefited from a successful Easter. KitKat had an excellent start to the year with strong trade acceptance in the UK for KitKat Senses and good growth in Europe after the re-launch of 4-finger KitKat in Germany and France. Overall, Latin America continued to be an excellent performer recording double-digit organic growth thanks to strong global and local chocolate and biscuit brands – in Brazil with Nestlé assortment boxes, in Chile with the Sahne Nuss and Super 8 brands and in Venezuela with Toronto and Samba. Double-digit organic growth was also generated in the Middle East, with strong sales of KitKat and Quality Street, in Asian markets, as well as in Great Britain.



Ice Cream had a good start to the year ahead of the summer season in Europe, in particular under the Mövenpick of Switzerland premium brand. The product group as a whole achieved double-digit organic growth in the Americas, as well as in Asia, Oceania and Africa.