Nestlé reports three-month sales for 2017
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Nestlé reports three-month sales for 2017
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sales
.......................................
Vevey, 20 April 2017
Nestlé reports three-month sales for 2017
* Sales increased by 0.4% on a reported basis to CHF 21.0 billion (3M-2016:
CHF 20.9 billion)
* Organic growth was solid at 2.3%, with 1.3% of real internal growth (RIG)
and pricing of 1.0%
* Sales were reduced by foreign exchange (-0.4%) and net divestments (-1.5%)
* Organic growth was 0.8% for developed markets and 4.3% for emerging markets
* Full-year guidance for 2017 confirmed
+------------------------------------------------------------------------------+
| Total Zone Nestlé Nestlé Other |
| Group Zone AMS EMENA Zone AOA Waters Nutrition Businesses|
+------------------------------------------------------------------------------+
|Sales 21.0 6.4 4.0 4.0 1.8 2.6 2.3 |
|3M-2017 |
|(CHF bn) |
+------------------------------------------------------------------------------+
|Sales 20.9 6.2 4.3 3.9 1.8 2.6 2.1 |
|3M-2016 |
|(CHF bn) |
+------------------------------------------------------------------------------+
|RIG 1.3% -1.4% 1.7% 3.0% 2.6% -0.4% 6.4% |
+------------------------------------------------------------------------------+
|Pricing 1.0% 1.8% 0.0% 1.5% 0.5% 1.5% -0.6% |
+------------------------------------------------------------------------------+
|Organic 2.3% 0.4% 1.7% 4.5% 3.1% 1.1% 5.8% |
|growth |
+------------------------------------------------------------------------------+
|Net M&A -1.5% -0.8% -5.9% -0.5% -0.2% -0.4% 1.6% |
+------------------------------------------------------------------------------+
|Foreign -0.4% 3.0% -2.7% -3.0% -1.8% -0.5% 0.2% |
|exchange |
+------------------------------------------------------------------------------+
|Reported 0.4% 2.6% -6.9% 1.0% 1.1% 0.2% 7.6% |
|sales |
|growth |
+------------------------------------------------------------------------------+
Effective as from 1 January 2017, Nestlé Professional is reported as a
regionally managed business included in the zones. Effective same date,
Venezuela is excluded from RIG, pricing and organic growth to better reflect the
underlying business performance.
Mark Schneider, Nestlé CEO: "Organic growth of 2.3% this quarter is within our
full-year guidance range. The leap year comparison and other seasonal effects
made the start of this year particularly challenging. We were encouraged by the
growth in Asia and the resilience of consumer spending in Europe. Consumer
demand in the Americas remained soft. Our pricing improved moderately. We
confirm our 2017 guidance and have made good progress with our growth and
efficiency projects to position our company for enhanced value creation."
Zone Americas (AMS)
* 0.4% organic growth: -1.4% RIG; 1.8% pricing
* Sales in North America declined slightly on an organic basis due to negative
RIG
* Latin America achieved low single-digit organic growth driven by pricing,
RIG was slightly negative
+------------------+---------------+-------+---------+-----+--------+----------+
| Sales |Sales | |Organic |Net |Foreign |Reported |
| 3M-2017 |3M-2016 RIG |Pricing|growth |M&A |exchange|growth |
+------------------+---------------+-------+---------+-----+--------+----------+
|Zone CHF 6.4 bn|CHF 6.2 -1.4%|1.8% |0.4% |-0.8%|3.0% |2.6% |
|AMS |bn | | | | | |
+------------------+---------------+-------+---------+-----+--------+----------+
Reported sales in zone AMS increased by 2.6% to CHF 6.4 billion. Organic growth
was subdued at 0.4% owing to a decline in RIG of 1.4%. Pricing of 1.8% mainly
came from Latin America, although North America also saw slightly positive
pricing. Net divestments reduced reported sales by 0.8% and foreign exchange was
a 3.0% benefit.
North America faced an environment of soft consumer demand. In the US coffee
creamers and frozen food maintained good momentum but confectionery and petcare
declined. Brazil had a difficult quarter with subdued Easter trading and fragile
economic conditions resulting in negative RIG and organic growth. Mexico's
growth remained positive but decelerated, reflecting difficult comparables and
weaker consumer confidence. Petcare saw good growth across Latin America.
Zone Europe, Middle-East and North Africa (EMENA)
* 1.7% organic growth: 1.7% RIG; 0% pricing
* Western Europe grew slightly on an organic basis with positive RIG but
slightly negative pricing
* Central and Eastern Europe achieved mid single-digit organic growth, with
both positive RIG and pricing
* The sub-region Middle East and North Africa saw mid single-digit organic
growth
+-------------------+--------------+-------+---------+-----+--------+----------+
| Sales |Sales | |Organic |Net |Foreign |Reported |
| 3M-2017 |3M-2016 RIG |Pricing|growth |M&A |exchange|growth |
+-------------------+--------------+-------+---------+-----+--------+----------+
|Zone CHF 4.0 bn|CHF 4.3 1.7%|0.0% |1.7% |-5.9%|-2.7% |-6.9% |
|EMENA |bn | | | | | |
+-------------------+--------------+-------+---------+-----+--------+----------+
Reported sales in zone EMENA declined by 6.9% to CHF 4.0 billion. Organic growth
was solid at 1.7%, based on resilient RIG of 1.7% and flat pricing. Net
divestments reduced reported sales by 5.9%, mainly due to the transfer of ice
cream to the Froneri joint venture. Foreign exchange headwinds reduced reported
sales by a further 2.7%.
Pricing improved, mainly from increases taken in Nescafé throughout the zone.
Pricing actions had a moderate impact on RIG. Petcare saw strong growth across
the zone, particularly in Russia. Turkey and North Africa performed well, while
the Middle East declined as political instability and deflation persisted.
Zone Asia, Oceania and sub-Saharan Africa (AOA)
* 4.5% organic growth: 3.0% RIG; 1.5% pricing
* South-East Asia saw good organic growth and was the largest contributor to
the zone's RIG
* China had negative organic growth due to Yinlu and the earlier timing of
Chinese New Year
* India and sub-Saharan Africa posted strong growth
* Oceania and Japan had solid organic growth with good RIG, partially offset
by negative pricing
+------------------+---------------+-------+---------+-----+--------+----------+
| Sales |Sales | |Organic |Net |Foreign |Reported |
| 3M-2017 |3M-2016 RIG |Pricing|growth |M&A |exchange|growth |
+------------------+---------------+-------+---------+-----+--------+----------+
|Zone CHF 4.0 bn|CHF 3.9 bn 3.0%|1.5% |4.5% |-0.5%|-3.0% |1.0% |
|AOA | | | | | | |
+------------------+---------------+-------+---------+-----+--------+----------+
Reported sales in zone AOA increased by 1.0% to CHF 4.0 billion. Organic growth
was strong at 4.5%, comprised of 3.0% RIG and 1.5% pricing. Net divestments
lowered reported sales by 0.5% and foreign exchange also had a negative impact,
reducing sales by 3.0%.
The zone's growth accelerated for a fourth consecutive quarter, driven by robust
performances in South-East Asia, India and sub-Saharan Africa. The zone gained
momentum despite a decline in China which was impacted by the earlier timing of
Chinese New Year, particularly in confectionery. Yinlu continued to weigh on
growth, although the pace of decline has reduced.
Nestlé Waters
* 3.1% organic growth: 2.6% RIG; 0.5% pricing
* The US delivered low single-digit organic growth with negative pricing
* Europe achieved solid RIG and organic growth with slightly negative pricing
* The Middle East, Turkey and China slowed but South-East Asia and Latin
America had good growth
+-------------------+--------------+-------+---------+-----+--------+----------+
| Sales |Sales | |Organic |Net |Foreign |Reported |
| 3M-2017 |3M-2016 RIG |Pricing|growth |M&A |exchange|growth |
+-------------------+--------------+-------+---------+-----+--------+----------+
|Nestlé CHF 1.8 |CHF 1.8 2.6%|0.5% |3.1% |-0.2%|-1.8% |1.1% |
|Waters bn |bn | | | | | |
+-------------------+--------------+-------+---------+-----+--------+----------+
Sales in Nestlé Waters increased on a reported basis by 1.1% to CHF 1.8 billion.
Organic growth decelerated but remained solid at 3.1%, with 2.6% RIG and 0.5%
pricing. Net divestments and foreign exchange reduced reported sales by 0.2% and
1.8% respectively.
Nestlé Waters continued to grow in all regions although there was some
deceleration, partly owing to challenging comparables. The US and Europe had
solid organic growth, although intense competition in both regions led to
deflationary pricing. Among emerging markets the Middle East, China and Turkey
declined but South-East Asia saw good growth and Latin America delivered double-
digit organic growth.
Nestlé Nutrition
* 1.1% organic growth: -0.4% RIG; 1.5% pricing
* In China organic growth recovered as category momentum gradually improved
* Price increases in the US, Brazil and Mexico weighed on RIG in these markets
* Organic growth in South-East Asia was strong
+---------------------+--------------+-------+--------+-----+--------+---------+
| Sales |Sales | |Organic |Net |Foreign |Reported |
| 3M-2017 |3M-2016 RIG |Pricing|growth |M&A |exchange|growth |
+---------------------+--------------+-------+--------+-----+--------+---------+
|Nestlé CHF 2.6 |CHF 2.6 -0.4%|1.5% |1.1% |-0.4%|-0.5% |0.2% |
|Nutrition bn |bn | | | | | |
+---------------------+--------------+-------+--------+-----+--------+---------+
Reported sales in Nestlé Nutrition increased by 0.2% to CHF 2.6 billion. Organic
growth was 1.1%, comprised of -0.4% RIG and 1.5% pricing. Net divestments and
foreign exchange reduced reported sales by 0.4% and 0.5% respectively.
Price increases had a mild adverse effect on RIG in the short-term. Growth in
China improved moderately, helped by increased demand for first stage products
and strong momentum of illuma in the super premium segment. Our NAN Optipro
roll-out continued to deliver good growth across Asia.
Other Businesses
* 5.8% organic growth: 6.4% RIG; -0.6% pricing
* Nespresso achieved mid single-digit organic growth, fuelled by double-digit
growth in North America
* Nestlé Health Science maintained mid single-digit organic growth driven
entirely by RIG
* Nestlé Skin Health saw double-digit organic growth with a strong RIG
contribution
+----------------------+--------------+-------+--------+----+--------+---------+
| Sales |Sales | |Organic |Net |Foreign |Reported |
| 3M-2017 |3M-2016 RIG |Pricing|growth |M&A |exchange|growth |
+----------------------+--------------+-------+--------+----+--------+---------+
|Other CHF 2.3 |CHF 2.1 6.4%|-0.6% |5.8% |1.6%|0.2% |7.6% |
|Businesses bn |bn | | | | | |
+----------------------+--------------+-------+--------+----+--------+---------+
Reported sales in Other Businesses increased by 7.6% to CHF 2.3 billion. Organic
growth improved to 5.8% as RIG of 6.4% was partially offset by 0.6% of
deflationary pricing. Net acquisitions increased reported sales by 1.6%, and a
tailwind from foreign exchange added a further 0.2%.
Nespresso's growth was solid as it continued to gain traction in North America.
Nestlé Health Science maintained mid single-digit growth, reflecting good growth
in Medical Nutrition. Nestlé Skin Health saw strong growth benefiting from low
prior year comparables and several new product launches.
Outlook
We confirm our full-year guidance for 2017 and expect organic growth between 2%
and 4%. In order to drive future profitability, we plan to increase
restructuring costs considerably in 2017. As a result, the trading operating
profit margin in constant currency is expected to be stable. Underlying earnings
per share in constant currency and capital efficiency are expected to increase.
Contacts
Media Robin Tickle Tel.: +41 21 924 22 00
Investors Steffen Kindler Tel.: +41 21 924 35 09
Annex
Three-month sales overview by operating segment
+------------------------------------------------------------------------------+
| Total Zone Nestlé Nestlé Other |
| Group Zone AMS EMENA Zone AOA Waters Nutrition Businesses|
+------------------------------------------------------------------------------+
|Sales 21.0 6.4 4.0 4.0 1.8 2.6 2.3 |
|3M-2017 |
|(CHF bn) |
+------------------------------------------------------------------------------+
|Sales 20.9 6.2 4.3 3.9 1.8 2.6 2.1 |
|3M-2016 |
|(CHF bn) |
+------------------------------------------------------------------------------+
|RIG 1.3% -1.4% 1.7% 3.0% 2.6% -0.4% 6.4% |
+------------------------------------------------------------------------------+
|Pricing 1.0% 1.8% 0.0% 1.5% 0.5% 1.5% -0.6% |
+------------------------------------------------------------------------------+
|Organic 2.3% 0.4% 1.7% 4.5% 3.1% 1.1% 5.8% |
|growth |
+------------------------------------------------------------------------------+
|Net M&A -1.5% -0.8% -5.9% -0.5% -0.2% -0.4% 1.6% |
+------------------------------------------------------------------------------+
|Foreign -0.4% 3.0% -2.7% -3.0% -1.8% -0.5% 0.2% |
|exchange |
+------------------------------------------------------------------------------+
|Reported 0.4% 2.6% -6.9% 1.0% 1.1% 0.2% 7.6% |
|sales |
|growth |
+------------------------------------------------------------------------------+
Three-month sales overview by product
+------------------------------------------------------------------------------+
| Milk Prepared |
| Powdered products Nutrition dishes & |
| Total & liquid & ice & Health cooking Confection- |
| Group beverages Water cream Science aids ery Petcare|
+------------------------------------------------------------------------------+
|Sales 21.0 4.8 1.7 3.1 3.7 2.9 2.0 3.0 |
|3M-2017 |
|(CHF bn) |
+------------------------------------------------------------------------------+
|Sales 20.9 4.7 1.7 3.2 3.5 2.9 2.0 2.9 |
|3M-2016 |
|(CHF bn) |
+------------------------------------------------------------------------------+
|RIG 1.3% 2.2% 3.0% -0.5% 2.3% 2.4% -2.6% 0.9% |
+------------------------------------------------------------------------------+
|Pricing 1.0% 1.4% 0.4% 1.8% 0.8% 1.8% -0.3% 0.4% |
+------------------------------------------------------------------------------+
|Organic 2.3% 3.6% 3.4% 1.3% 3.1% 4.2% -2.9% 1.3% |
|growth |
+------------------------------------------------------------------------------+
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Nestlé S.A. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 20.04.2017 - 07:16 Uhr
Sprache: Deutsch
News-ID 537184
Anzahl Zeichen: 20327
contact information:
Town:
Vevey
Kategorie:
Business News
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