Swiss food titan Nestlé today [Thursday] reported sales up 6% to SFr66.2bn (US$43.9bn), in line with forecasts in the first three quarters of the year.


The company was keen to point out that exchange rates had exercised a negative impact of 7.3% during the period. In a statement to the press, the company stated that if the impact of exchange rate fluctuation was stripped out, sales could be said to have risen by 13.3%. At comparable structure and at constant exchange rates, Nestlé said, sales grew 4.8%, composed of real internal growth of 3.4% and price increases of 1.4%.


At just 3.4%, key internal RIG growth figures (Nestlé real internal growth measure that eliminates the effects of price movements, currency fluctuation, acquisitions and disposals) undershot forecasts of 3.8%, Reuters pointed out.


“RIG in Latin America felt the full impact of the deteriorating economic situation in several countries and was flat,” NestlĂ© said. The group remained bullish, however, saying that it was confident the real internal growth figure would grow by year-end, although it no longer expects to reach its earlier estimate of 4%.


An analyst at HSBC, Anne Alexandre, is quoted as saying: “RIG is disappointing, that’s the main thing. Consensus was 3.8% for the nine months. I had 3.7% percent personally. They talk about Latin America on the downside. No-one really expected them to hit 4% (for the year).”


Nestlé said it expected 2002 profit and sales to be above 2001 levels.


Speaking to journalists earlier today, CEO Peter Brabeck said the fear of a credit downgrade from its Triple AAA rating would not stop the group making a strategic important. Speculation is growing that Nestlé could be in the running to buy part of the Adams gum unit being sold by the US pharmaceuticals giant Pfizer.