Nestlé nine-month: broad-based organic growth, decline in sales

In the first nine months of 2014, Nestlé SA, Vevey, has achieved organic growth of 4.5%, composed of 2.3% real internal growth and 2.2% pricing. According to the company, sales were CHF 66.2 bn, impacted by substantial negative foreign exchange of - 7.5%. Divestitures, net of acquisitions, further reduced sales growth by - 0.1%. As a result the total evolution of sales was - 3.1%.

Nestlé continued to grow in all geographies: 5.1% in the Americas, 1.4% in Europe and 6.5% in Asia, Oceania and Africa. The developed markets grew 0.5% and the emerging markets 9.5%. In the Zone Europe sales were CHF 11.1 bn (1.0% organic growth, 2.0% real internal growth). Western Europe grew, with Spain and Portugal, France, Austria and the Netherlands contributing to the growth, while the Great Britain region, Germany and Italy were weaker. Central and Eastern Europe continued the trends seen earlier in the year. Russia performed well with the confectionery and ice cream categories and Nescafé Dolce Gusto achieving double-digit growth. Ukraine delivered a good performance. In other parts of the region there was a mixed picture.

In the Nestlé product category Confectionery sales declined in the first nine months of 2014 to CHF 6.7 bn (previous year CHF 7.2 bn). Organic growth in this category was 4.1%, real internal growth was 0.3%.

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