Nestlé first-quarter sales: 7.2% organic growth, full-year outlook confirmed

In the first three months of 2012, Nestlé SA sales increased by 5.6% to CHF 21.4 bn. Organic growth was 7.2%, composed of 2.8% real internal growth and pricing of 4.4%. Acquisitions net of divestitures, added 3% to sales, whilst foreign exchange had a negative impact of 4.6%. Nestlé`s three geographies contributed positively to the first quarter's growth: the Americas achieved organic growth of 6.8%, Europe delivered 3.4% and Asia, Oceania and Africa 12.2%. The business grew 13.0% in emerging markets and 3.1% in developed markets. This performance reflects the contrasting market conditions in the developed and emerging worlds: the trading environment in many developed markets with low consumer confidence is sluggish whilst conditions in most emerging markets remain dynamic and rich in growth opportunities.

As anticipated, the trading environment in 2012 is challenging. The good growth in the first quarter together with the pricing effect for the rest of the year and a likely improved raw material environment in the second half, allows Nestlé to confirm the full-year outlook of delivering 5-6% organic growth together with an improvement in the year-end margin and underlying earnings per share in constant currencies.

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