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Nestle reports strong growth
Date: 12/08/2010
Paul Bulcke, Nestlé CEO, says, “The Group's successful first-half performance covers the full range from premium brands to value-priced offerings. We have prepared the company for a more challenging second half, which allows me to reconfirm our earlier full-year guidance for Food and Beverages – organic growth of around 5% combined with an increase in EBIT margin in constant currencies.”
In the North American confectionery market, the Wonka extension into chocolate continued to drive growth and in ice cream, the company saw good growth from Häagen Dazs and Skinny Cow. In Latin America, growth accelerated during the second quarter of 2010 to achieve double-digit organic growth in the first half. The biggest categories in the region, dairy and chocolate, both performed well. Chocolate had a strong start to the year and a successful Easter season in Brazil and Mexico, as well as in smaller markets.
In Western Europe, Nestlé achieved positive real internal growth in all key markets through a focus on increasing distribution, improving customer service and accelerating innovation and renovation. In Russia, ice cream and confectionery remained soft.
In the emerging markets in Zone Asia, Oceania and Africa, chocolate continued double-digit growth, driven partly by the implementation of the positioned products model, including Nestlé éclairs in India, which are the lowest priced products in Nestlé's portfolio.
New facilities were inaugurated in various emerging markets – a Research and Development centre for biscuits and cereal-based snacks in Santiago de Chile and a facility devoted to manufacturing powdered milk and confectionery products in Dubai.
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