Nestlé: strong sales in the operation segment confectionery

In the first nine months of 2010, Nestlé Group sales amounted to CHF 82.8 bn, consisting of 6.1% organic growth, including 4.5% real internal growth. According to the company, foreign exchange impacted sales by - 2.7%, whilst acquisitions, net of divestitures, added 0.7%. Overall, Group sales increased by 4.1%. Food and Beverages sales reached CHF 77.0 bn, consisting of 5.7% organic growth, including 4.2% real internal growth. Foreign exchange impacted sales by - 2.8%, whilst acquisitions, net of divestitures, added 1.6%. Overall, Food and Beverages sales rose by 4.5%. Worldwide sales in the operation segment confectionery amounted to CHF 8.5 bn, consisting of 7.4% organic growth, including 3.7% real internal growth.

All key Western European markets, including Germany, France, the UK, Italy and the Iberian region, saw good growth, helped by the continued strong performance of recent innovations and roll-outs such as Nescafé Dolce Gusto, Nescafé Green Blend, Maggi Juicy Chicken and Nestlé Grand Chocolat. The market share performance was good, with gains in most countries and categories. The Zone Europe achieved sales of CHF 15.9 bn with 2.0% organic growth and 1.3% real internal growth. Chocolate, in the 75th anniversary year of the launch of KitKat, performed well in Western Europe.

Paul Bulcke, Nestlé CEO: “Our performance is the result of clear strategic alignment and focus on execution throughout the whole organisation, both in developed and in emerging markets. Our ongoing efforts on the cost side combined with increased investment in our brands, innovation, capabilities and people have, as previously stated, prepared us well for the second half. Indeed, the first half`s growth momentum continued unabated in the third quarter, providing a good base for the full year as we face challenging comparatives in the final quarter. We therefore reconfirm that our Food and Beverages business will achieve organic growth of around 5% combined with an increase in EBIT margin in constant currencies for 2010 as a whole.”

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