Nestlé’s 9-month sales show slight dip
Nestlé, the world’s largest food company, saw its 9-month sales drop 0.4% to CHF 65.3 billion, reduced by net divestments of 2.6% (mainly due to the creation of the Froneri joint venture) and negative foreign exchange effects of 0.4%.
Nestlé, the world’s largest food company, saw its 9-month sales drop 0.4% to CHF 65.3 billion, reduced by net divestments of 2.6% (mainly due to the creation of the Froneri joint venture) and negative foreign exchange effects of 0.4%. The multinational achieved organic growth of 2.6%, with 1.8% of real internal growth (RIG) and pricing of 0.8%. Emerging markets led organic growth with a 5.1% increase compared to only 0.8% in developed markets.
Sales in North America were flat. Brazil was affected by the difficult trading environment, while Mexico remained resilient and other parts of Latin America continued to deliver good growth. Europe, Middle East and North Africa saw a significant improvement in growth compared to the half year, as the coffee and pet categories drove strong RIG in the third quarter. Sales in Asia, Oceania and Sub-Saharan Africa growth were strong, with steady improvement in China and sustained high growth in other sub-regions supporting the positive trend.
Nestlé Waters was impacted by poor weather, which weighed on growth in the third quarter. Growth in Nestlé Nutrition remained soft. Nespresso reported mid-single-digit growth, with double-digit growth in North America. Nestlé Skin Health benefited from the phasing of several new product launches. Nestlé Health Science reported mid-single-digit growth.