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Nestlé first quarter turnover: 4.3% OG (organic growth), annual forecasts confirmed

  • Turnover increased by 5,4 % to CHF 21,9 billion.

  • 4.3%OG( organic growth , 2.3% RIG (real internal growth ).

  • Forecasts for the whole year unchanged: 5-6 OG (organic growth), as well as higher operating trading yields and higher real earnings per share in constant currency, as well as increased capital efficiency.

Paul Bulcke, Head of Nestlé: "The beginning of the year reflects the caution we expressed in February. We continue to expect instability in 2013, but reaffirm our plans to meet our annual targets: gross revenues, net revenues and capital efficiency. In a European market where consumer confidence remains low, the indicators are particularly good. Progress is also being made in North America, and we are predicting a stronger breakthrough in key emerging markets. Our international activities, unique variety of categories and proven ability to offer consumers innovative products and services allow us to achieve short-term success while creating favourable conditions for continued long-term success."

 

Business overview

Vede, April 18, 2013. In the first three months of 2013, turnover increased by 5,4 %, to CHF 21,9 billion. Organicgrowth (organic growth) was4.3%, of which 2.3% came from real internal growth and 2.0% from price increases. Acquisition and disposal of enterprises increased turnover by 2.0 %, but foreign exchange influence reduced by 0.9 %.

All three business regions accounted for 4.3% of OG(organic growth) inthe first quarter, complementing the success of the first quarter of 2012 of 7.2% of OG (organic growth). In America, growth was 5.1 %, in Europe 1.0 % and in Asia, Oceania and Africa 6.1 %. Our company grew 8.4% in emerging markets and 0.9% in developed markets, reflecting different trading conditions in different regions.

 

American region

CHF 6,6 billion turnover, 5.3% OG (organic growth), 1.5% RIG ( real internal growth or real turnovergrowth in comparable volumes)

  • The growth of the company was observed both in North America and Latin America. Pet food, dairy products, chocolate, powder drinks and culinary products were also at the heart of this broad growth.

  • In North America, good sales were for Coffee-Mate, DiGiorno pizza, Nescafé,ice cream, chocolate and pet food. Sales of frozen products were different, such as Lean Cuisine's low turnover was offset by Stouffer's sales figures. New products including Häagen-Dazs Gelato, Pizzeria! and pet food Beneful Medleys helpedensure the pace of development in the relevant categories.

  • Latin America – Dairy products and ice cream were in high demand in Mexico. Brazil performed well in all major categories. In other regions, sales were mostly positive. The further introduction of Nescafé Dolce Gusto to the market is progressing well, and the pace of development of pet food remained stable, proving that we have chosen a successful strategy for this category.

 

European region

CHF 3,7 billion turnover, 1.5% organic growth, 1.7% real internal growth

  • The company experienced growth in both Western and Central and Eastern Europe, increasing its market share. Purina Petcare Europe's rapid growth rate remained with the introduction of innovations in the brands Gourmet and Felix, and the distribution network was expanded. Coffee sales were good, especially in its two largest markets, great Britain and Russia, where nescafé Dolce Gusto and Nescafé Gold were particularly successful. For the frozen products and pizza category, the beginning of the year was not successful, but ice cream sales figures were affected by the late spring. In the sale of nesquik and sweets, the beginning of the year was good.

  • In Western Europe In the British region and the Benelux countries, the year started well. After a successful previous year, France's figures were low, while growth began in Germany. Greece and Portugal achieved good sales figures despite the challenging market environment.

  • Central and Eastern European sales were the best in recent years, especially in Russia, where real internal growth was significant in all categories.

 

Asia, Oceania and Africa

CHF 4,7 billion turnover, 4.4% OG(organic growth),3.3% RIG ( real internal growth or real turnovergrowth in comparable volumes)

  • The company developed in both developed and emerging markets in the region, generally maintaining its market shares. Good results were achieved in the sale of long-stocked dairy products, ice cream, sweets, finished drinks and breakfast cereals, but the popularity of the new Nescafé Dolce Gusto continued to grow.

  • In developed markets Oceania regained its pace of development, while in Japan good sales figures remained for soluble coffee and its machines, as well as chocolate.

  • Emerging markets had different dynamics across the region. Certain markets had low sales figures, especially compared to the first quarter of 2012, and events in the Middle East had a negative impact. However, China as a whole experienced very good growth, especially in our new partner companies Yinlu and Hsu Fu Chi. Good results were also achieved in Turkey and in some regions of Africa and Indonesia.

 

Nestlé Waters

CHF 1,6 billion turnover, 1.8 % OG(organic growth),0.1 % RIG (real internal growth or real turnovergrowth in comparable volumes))

  • Late spring had an impact on developed markets. The business in North America developed, partly due to the sales figures of our high-quality brands S. Pellegrino and Perrier, as well as Nestlé Pure Life. Our U.S. regional brands faced strong price pressures. Europe's growth continued to be based on Perrier, as was The Great Britain, where a new plant started in Buxton. Elsewhere, the business adapted to existing market conditions.

  • The percentage growth of emerging markets was still measured by double digits provided by Nestlé Pure Life and our strong local brands supported by production capacity investments in Brazil, Nigeria, Vietnam and China.

 

Nestlé Nutrition

CHF 2,5 billion turnover, 7.6% of OG(organic growth),5.0% of RIG ( real internal growth or real turnovergrowth in comparable volumes)

  • In the baby food category, very good sales figures were achieved, forming double digits in the first quarter, resulting in an increase in the company's market share in all regions, especially in Russia, France, Brazil, the USA, China and South Asia. The main drivers of global growth were the introduction of significant innovations in the category of infant formula, meals and beverages, as well as porridge, and adequate level of support for brands. Purchased at the end of 2012, Wyeth Nutrition was successfully developed according to our forecasts and the planned business integration is currently under way.

  • In the sports nutrition category, sales figures for the beginning of the year were low. The turnover of weight control products continued to decrease and we started implementing a new plan.

 

Other indicators

CHF 2,9 billion turnover, 4.2% OG (organic growth), 2.7% RIG ( real internal growth or real turnovergrowth in comparable volumes)

  • Nestlé Professional successfully developed in North America, despite the general decline in the market for professional products. Sales figures also rose in emerging markets. It was based on higher-value strategic platforms, beverage solutions, the success of which in percentages was measured by double digits, as well as culinary solutions. This growth made it possible to smooth out the weakest indicators of the component categories.

  • Nespresso continued to expand, accelerating its entry into markets outside Europe. The particularly successful launch of new products such as Linizio Lungo and the first Nespresso "morning" coffee, as well as the limited quantities available in Trieste and Napoli, helped the business grow in all regions.

  • Nestlé Health Science's turnover was affected by changes in the southern European wage model and new competitors in the US. The acquisition of the US company Pamlab further strengthened our ability to provide personalized healthcare through nutrition, especially in terms of metabolism and brain health. The company also received legal permission with Chi-Med to form a joint venture, Nutrition Science Partners Limited, which will improve our ability to conduct research, development, production and marketing of plant-based medical products, as well as provide access to one of the world's leading Chinese traditional medical libraries.

 

Prognozes par 2013. gadu

Gada sākums bija tik sarežģīts, kā paredzēts. Šogad joprojām var būt gaidāma nestabilitāte, bet mēs atkārtoti apstiprinām savu mērķi arī 2013. gadā īstenot Nestlé modeli: 5–6 % OG (organic growth jeb organiskā izaugsme), lielāks tirdzniecības pamatdarbības ienesīgums un lielāki reālie ieņēmumi uz akciju konstantā valūtā, kā arī kapitāla efektivitātes palielināšanās.

Pielikums

2013. gada pirmā ceturkšņa apgrozījuma pārskats

  Jan.–mar., 2013 Apgrozījums, CHF milj. Jan.–mar., 2012 Apgrozījums, CHF milj. (*) Jan.–mar., 2013 OG (%) Jan.–mar., 2013 RIG (%)
Pēc segmenta
* Amerikas reģions 6 638 6 460 +5,3 +1,5
* Europas reģions 3 669 3 580 +1,5 +1,7
* Āzijas, Okeānijas, Āfrikas reģions 4 666 4 579 +4,4 +3,3
„Nestlé Waters“ 1 597 1 552 +1,8 +0,1
„Nestlé Nutrition“ 2 482 1 877 +7,6 +5,0
Citi 2 887 2 775 +4,2 +2,7
Grupai kopā 21 939 20 823 +4,3 +2,3
Pēc produkta
Pulveru un šķidrie dzērieni 4 914 4 718 +4,4 +3,7
Ūdens 1 501 1 463 +1,7 +0,1
Piena produkti un saldējums 3 946 3 911 +4,1 +1,7
Uzturs un veselības aprūpe 2 929 2 322 +6,3 +3,9
Gatavie ēdieni un piedevas 3 378 3 387 -0,1 -0,7
Saldumi 2 524 2 477 +5,8 +3,1
GMājdzīvnieku barība 2 747 2 545 +7,9 +3,6
Grupai kopā 21 939 20 823 +4,3 +2,3
 

(*) 2012. gads atkārtoti paziņots attiecībā uz 11. starptautisko finanšu pārskatu standartu (SFPS) par kopuzņēmumiem. Turklāt dzērieni, kas nav ūdens un ko pārdod Nestlé Waters (galvenokārt gatavās tējas un sulas), ir pārklasificētas kā pulveru un šķidrie dzērieni.