Swiss behemoth Nestlé today [Thursday] posted Q1 sales up 10.1% year on year; weaker than expected but nothing to worry about, said the Vevey-based food manufacturer, as it reiterated a key growth target and forecasts of record sales and profitability for 2002.
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Nestlé’s consolidated sales reached CHF21.3bn (US$12.76bn) during the first three months of 2002, a 10.1% increase on CHF19.4bn a year ago, but according to seven analysts polled by Reuters, sales were expected to grow 11%.
The growth was nevertheless helped by the first-time inclusion of the sales of Ralston Purina which are consolidated since 1 January, which accounted for 7.9% of the growth, and the fact that Nestlé was able to increase prices by 1.7%.
Nestlé said its cumulative real internal growth (RIG), a benchmark that strips out the effects of price changes, currency movements and acquisitions, was 3.3% at the end of March, below its 4% target.
CEO Peter Brabeck insisted however: “We are confident that we will again reach our real internal growth target of 4% and that Nestlé will once more improve sales and profits for 2002.”
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By GlobalDataNestlé’s largely recession-resistant portfolio of brands, including Nescafé, Perrier, Maggi, and Friskies catfood, are expected to boost growth in 2002.
Brabeck added that the firm’s focus in 2002 was on consolidation; squeezing savings through synergies generated by acquisitions and a number of savings programmes.
Sales by Product Group__________________________________________________________________________
Jan.–March Jan.–March Variation RIG
2002 2001 Jan. – March 2002
CHF Millions % %
Beverages 5’449 5’343 2 4,7
Milk/Nutrition 5’489 5’197 5,6 2,4
Culinary 3’789 3’629 4,4 2,4
Pet Care 2’653 1’411 88 2
Chocolate/ 2’623 2’588 1,3 1,8
Confectionery
Pharma 1’308 1’184 10,5 9,7
_________________________________________________________________________
Total 21’311 19’352 10,1 3,3
