Nestlé reports nine-month sales for 2017
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Nestlé S.A. /
Nestlé reports nine-month sales for 2017
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Vevey, October 19, 2017
Nestlé reports nine-month sales for 2017
* Organic growth of 2.6%, with 1.8% of real internal growth (RIG) and pricing
of 0.8%.
* Total reported sales decreased by 0.4% to CHF (Swiss Francs) 65.3 billion
(9M-2016: CHF (Swiss Francs) 65.5 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%.
* Organic growth was 0.8% in developed markets and 5.1% in emerging markets.
* We confirm our sales guidance for 2017, and now expect organic growth for
the full year to be around the level of the nine-month period. The
underlying trading operating profit margin for 2017 is set to improve by at
least 20 basis points in constant currency, in line with our expectations.
Our structural savings initiatives are progressing faster than originally
planned, leading to an additional increase of CHF (Swiss Francs) 400-500
million in restructuring and related expenses in 2017. As a result, our
trading operating profit margin will decrease by 40-60 basis points in
constant currency. We expect underlying earnings per share in constant
currency and capital efficiency to increase.
| | |Zone |Zone | | |
| | |EMENA |AOA | | |
| | |(Europe,|(Asia, | | |
| Total |Zone AMS |Middle |Oceania|Nestlé|Nestlé |Other
| group |(Americas)|East and|and |Waters|Nutrition|businesses
| | |North |sub- | | |
| | |Africa) |Saharan| | |
| | | |Africa)| | |
| | | | | | | |
Sales 9M-2017 | | | | | | |
(CHF (Swiss |65'272 |20'490 |11'821 |11'853 |6'150 |7'711 |7'247
Francs) | | | | | | |
million) | | | | | | |
---------------+ | | | | | |
Sales 9M-2016 | | | | | | |
(CHF (Swiss |65'514 |20'086 |13'046 |11'623 |6'134 |7'707 |6'918
Francs) | | | | | | |
million) | | | | | | |
---------------+ | | | | | |
RIG (Real | | | | | | |
Internal |1.8% |0.3% |1.4% |3.6% |2.1% |0.4% |5.0%
Growth) | | | | | | |
---------------+ | | | | | |
Pricing |0.8% |1.0% |0.5% |1.7% |0.1% |0.6% |0.1%
---------------+ | | | | | |
Organic growth|2.6% |1.3% |1.9% |5.3% |2.2% |1.0% |5.1%
---------------+ | | | | | |
Net M&A | | | | | | |
(Mergers and |-2.6% |-0.7% |-10.5% |-0.5% |-0.4% |-0.4% |-0.6%
Acquisitions) | | | | | | |
---------------+ | | | | | |
Foreign |-0.4% |1.4% |-0.8% |-2.8% |-1.7% |-0.4% |0.3%
exchange | | | | | | |
---------------+ | | | | | |
Reported sales|-0.4% |2.0% |-9.4% |2.0% |0.1% |0.2% |4.8%
growth | | | | | | |
Mark Schneider, Nestlé CEO (Chief Executive Officer): "Our sales results for the
nine-month period are in line with our expectations communicated in July.
Organic sales growth continued to benefit from industry-leading volume growth,
which illustrates our ability to innovate and meet consumer demand. Pricing
remained soft. Zone AOA (Asia, Oceania and sub-Saharan Africa) saw further
improvement in organic growth. As expected, Western Europe returned to positive
organic growth, with significant contributions from coffee and confectionery.
Improving our efficiency is a key priority. We have identified further
opportunities to accelerate our margin improvement, leading to a further
increase in restructuring and related expenses in 2017. Consequently, we now
expect our trading operating profit margin to decrease by 40-60 basis points.
The development of our underlying trading operating profit margin is fully in
line with our expectations for 2017."
Group sales
Organic growth increased to 2.6%, supported by improved RIG (Real Internal
Growth) of 1.8%. Pricing softened slightly to 0.8%. Net divestments had a
negative impact of 2.6%, largely related to the creation of the Froneri joint
venture. Foreign exchange reduced reported sales by a further 0.4%. Total
reported sales were CHF (Swiss Francs) 65.3 billion (-0.4%).
Growth in Zone AMS (Americas) remained subdued. North America was flat in the
context of negative category dynamics. Brazil was affected by the difficult
trading environment, while Mexico remained resilient and other parts of Latin
America continued to deliver good growth. Zone EMENA (Europe, Middle East and
North Africa) saw a significant improvement in growth compared to the half year,
as the coffee and petcare categories drove strong RIG (Real Internal Growth) in
the third quarter. Zone AOA (Asia, Oceania and sub-Saharan Africa)'s growth was
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.
Growth by category was broad-based, led by coffee, petcare and ambient culinary.
Zone Americas (AMS)
* 1.3% organic growth: 0.3% RIG (Real Internal Growth), 1.0% pricing.
* Sales in North America remained flat.
* Latin America maintained mid-single-digit organic growth. RIG (Real Internal
Growth) improved in the third quarter but pricing declined.
| | |RIG | | |Net M&A | |
| Sales |Sales |(Real |Pricing|Organic|(Mergers and |Foreign |Reported
| 9M-2017 |9M-2016 |Internal| |growth |Acquisitions)|exchange|growth
| | |Growth) | | | | |
| | | | | | | | |
|CHF |CHF | | | | | |
Zone AMS |(Swiss |(Swiss | | | | | |
(Americas)|Francs) |Francs) |0.3% |1.0% |1.3% |-0.7% |1.4% |2.0%
|20.5 |20.1 | | | | | |
|billion |billion | | | | | |
Organic growth remained at 1.3% but the RIG (Real Internal Growth) component
improved to 0.3%. This was due to stronger RIG (Real Internal Growth) in Latin
America during the third quarter. Positive contributions in both North America
and Latin America contributed to pricing of 1.0%. However pricing dynamics
shifted during the third quarter, as North America's pricing improved while
Latin America's pricing declined. Net divestments reduced reported sales by
0.7%. Foreign exchange increased reported sales by 1.4%. Reported sales in Zone
Americas increased by 2.0% to CHF (Swiss Francs) 20.5 billion.
Our organic growth in North America was flat in a context of soft consumer
demand. RIG (Real Internal Growth) was slightly negative, but there was a modest
improvement in pricing. Our coffee creamers, petcare, U.S. (United States)
frozen food and pizza businesses generated growth, offset by declines in
confectionery and ice cream. In Brazil, RIG (Real Internal Growth) increased
significantly during the third quarter, as broad-based price decreases were
introduced in line with market dynamics and input cost deflation. Mexico
maintained a resilient level of growth despite the impact of natural disasters.
Petcare continued to see double-digit growth across Latin America.
Zone Europe, Middle East and North Africa (EMENA)
* 1.9% organic growth: 1.4% RIG (Real Internal Growth), 0.5% pricing.
* Western Europe returned to positive organic growth, with both positive RIG
(Real Internal Growth) and pricing.
* Central and Eastern Europe maintained mid-single-digit organic growth, with
strong RIG (Real Internal Growth) and slightly negative pricing.
* Middle East and North Africa saw low single-digit organic growth, with
positive RIG (Real Internal Growth) and pricing.
| | |RIG | | |Net M&A | |
| Sales |Sales |(Real |Pricing|Organic|(Mergers and |Foreign |Reported
| 9M-2017 |9M-2016 |Internal| |growth |Acquisitions)|exchange|growth
| | |Growth) | | | | |
| | | | | | | | |
Zone | | | | | | | |
EMENA |CHF |CHF | | | | | |
(Europe,|(Swiss |(Swiss | | | | | |
Middle |Francs) |Francs) |1.4% |0.5% |1.9% |-10.5% |-0.8% |-9.4%
East and|11.8 |13.0 | | | | | |
North |billion |billion | | | | | |
Africa) | | | | | | | |
Organic growth improved to 1.9%, supported by higher RIG (Real Internal Growth)
of 1.4% and sustained positive pricing. Net divestments reduced reported sales
by 10.5%, mainly due to the transfer of ice cream to the Froneri joint venture.
Foreign exchange effects reduced reported sales by a further 0.8%. Reported
sales in Zone EMENA (Europe, Middle East and North Africa) declined by 9.4% to
CHF (Swiss Francs) 11.8 billion.
Organic growth accelerated across all sub-regions. RIG (Real Internal Growth)
improved significantly in Western Europe, with good third-quarter growth in
coffee, confectionery and culinary. Central and Eastern Europe continued its
strong momentum, particularly in Russia, reflecting increased distribution.
Petcare was strong across the zone, with double-digit organic growth in Central
and Eastern Europe. Growth in the Middle East and North Africa improved in the
third quarter, but the trading environment remained challenging overall.
Zone Asia, Oceania and sub-Saharan Africa (AOA)
* 5.3% organic growth: 3.6% RIG (Real Internal Growth), 1.7% pricing.
* South-East Asia continued its good organic growth, based on RIG (Real
Internal Growth).
* China's organic growth was positive, supported by both RIG (Real Internal
Growth) and pricing.
* Sub-Saharan Africa continued to grow, and the South Asia region maintained
strong RIG (Real Internal Growth) momentum.
* Japan maintained solid organic growth with strong RIG (Real Internal
Growth).
| | |RIG | | |Net M&A | |
| Sales |Sales |(Real |Pricing|Organic|(Mergers and |Foreign |Reported
| 9M-2017 |9M-2016 |Internal| |growth |Acquisitions)|exchange|growth
| | |Growth) | | | | |
| | | | | | | | |
Zone | | | | | | | |
AOA |CHF |CHF | | | | | |
(Asia, |(Swiss |(Swiss | | | | | |
Oceania|Francs) |Francs) |3.6% |1.7% |5.3% |-0.5% |-2.8% |2.0%
and |11.9 |11.6 | | | | | |
sub- |billion |billion | | | | | |
Saharan| | | | | | | |
Africa)| | | | | | | |
Organic growth was strong, reaching 5.3% at the end of September. RIG (Real
Internal Growth) improved to 3.6% with pricing at 1.7%. Net divestments and
foreign exchange reduced reported sales by 0.5% and 2.8%, respectively. Reported
sales in Zone AOA (Asia, Oceania and sub-Saharan Africa) increased by 2.0% to
CHF (Swiss Francs) 11.9 billion.
Growth in China continued to improve in the third quarter with positive momentum
across the portfolio, particularly in coffee and culinary. South-East Asia
maintained mid-single-digit growth, and sub-Saharan Africa reported double-digit
growth. South Asia also delivered solid growth, successfully managing the
introduction of a Goods and Services Tax (GST) in India that had a negative
impact on pricing.
Nestlé Waters
* 2.2% organic growth: 2.1% RIG (Real Internal Growth), 0.1% pricing.
* In the United States positive organic growth was maintained over the nine-
month period, while the third quarter saw a decline.
* Europe saw low single-digit organic growth with negative RIG (Real Internal
Growth) in the third quarter.
* Growth remained strong across Latin America and solid in AOA (Asia, Oceania
and sub-Saharan Africa).
| | |RIG | | |Net M&A | |
| Sales |Sales |(Real |Pricing|Organic|(Mergers and |Foreign |Reported
| 9M-2017 |9M-2016 |Internal| |growth |Acquisitions)|exchange|growth
| | |Growth) | | | | |
| | | | | | | | |
|CHF |CHF | | | | | |
Nestlé|(Swiss |(Swiss | | | | | |
Waters|Francs) |Francs) |2.1% |0.1% |2.2% |-0.4% |-1.7% |0.1%
|6.2 |6.1 | | | | | |
|billion |billion | | | | | |
Organic growth slowed to 2.2%, with 2.1% RIG (Real Internal Growth) and 0.1%
pricing. Net divestments and foreign exchange reduced reported sales by 0.4% and
1.7%, respectively. Reported sales in Nestlé Waters were broadly flat at CHF
(Swiss Francs) 6.2 billion.
Nestlé Waters saw a decline in developed markets in the third quarter. This was
largely due to difficult comparables and poor weather that impacted demand in
North America and Europe. Competition remained intense, with sustained pricing
pressure across all developed markets. There was good momentum in emerging
markets. The international premium brands continued to drive growth globally.
Nestlé Nutrition
* 1.0% organic growth: 0.4% RIG (Real Internal Growth), 0.6% pricing.
* In China organic growth remained subdued but with an improvement in the
third quarter.
* The United States and Mexico had slightly positive organic growth but Brazil
declined on lower pricing.
* Organic growth in South Asia and Africa remained strong.
| | |RIG | | |Net M&A | |
| Sales |Sales |(Real |Pricing|Organic|(Mergers and |Foreign |Reported
| 9M-2017 |9M-2016 |Internal| |growth |Acquisitions)|exchange|growth
| | |Growth) | | | | |
| | | | | | | | |
|CHF |CHF | | | | | |
Nestlé |(Swiss |(Swiss | | | | | |
Nutrition|Francs) |Francs) |0.4% |0.6% |1.0% |-0.4% |-0.4% |0.2%
|7.7 |7.7 | | | | | |
|billion |billion | | | | | |
Organic growth remained soft at 1.0%, comprised of 0.4% RIG (Real Internal
Growth) and 0.6% pricing. Net divestments and foreign exchange reduced reported
sales by 0.4% and 0.4%, respectively. Reported sales in Nestlé Nutrition
increased slightly by 0.2% to CHF (Swiss Francs) 7.7 billion.
Growth in China improved in the third quarter due to the good momentum of NAN
and Illuma. Growth in the United States remained generally subdued, while infant
cereals performed well. The comprehensive re-launch of Gerber, including organic
and natural ranges, began during September. Brazil declined as price adjustments
were made to reflect local input cost deflation.
Other businesses
* 5.1% organic growth: 5.0% RIG (Real Internal Growth), 0.1% pricing.
* Nespresso continued its mid-single-digit organic growth, including double-
digit growth in North America.
* Nestlé Health Science maintained mid-single-digit organic growth with
positive RIG (Real Internal Growth) and pricing.
* Nestlé Skin Health reported mid-single-digit organic growth based entirely
on RIG (Real Internal Growth).
| | |RIG | | |Net M&A | |
| Sales |Sales |(Real |Pricing|Organic|(Mergers and |Foreign |Reported
| 9M-2017 |9M-2016 |Internal| |growth |Acquisitions)|exchange|growth
| | |Growth) | | | | |
| | | | | | | | |
|CHF |CHF | | | | | |
Other |(Swiss |(Swiss | | | | | |
businesses|Francs) |Francs) |5.0% |0.1% |5.1% |-0.6% |0.3% |4.8%
|7.2 |6.9 | | | | | |
|billion |billion | | | | | |
Organic growth accelerated to 5.1% driven by strong RIG (Real Internal Growth)
of 5.0% and improved pricing, which was broadly flat. Net divestments reduced
reported sales by 0.6% but foreign exchange effects had a positive impact of
0.3%. Reported sales in Other businesses increased by 4.8% to CHF (Swiss Francs)
7.2 billion.
Nespresso's consistent mid-single-digit organic growth was supported by double-
digit growth from North America, solid growth in EMENA (Europe, Middle East and
North Africa) and strong growth in AOA (Asia, Oceania and sub-Saharan Africa).
Nestlé Skin Health benefited from several new product launches during the third
quarter. Nestlé Health Science maintained mid-single-digit growth driven by
medical nutrition, particularly in pediatric care and specialty products.
Outlook
We confirm our sales guidance for 2017, and now expect organic growth for the
full year to be around the level of the nine-month period. The underlying
trading operating profit margin for 2017 is set to improve by at least 20 basis
points in constant currency, in line with our expectations. Our structural
savings initiatives are progressing faster than originally planned, leading to
an additional increase of CHF (Swiss Francs) 400-500 million in restructuring
and related expenses in 2017. As a result, our trading operating profit margin
will decrease by 40-60 basis points in constant currency. We expect underlying
earnings per share in constant currency and capital efficiency to increase.
Annex
Nine-month sales overview by operating segment
| | |Zone |Zone | | |
| | |EMENA |AOA | | |
| | |(Europe,|(Asia, | | |
| Total |Zone AMS |Middle |Oceania|Nestlé|Nestlé |Other
| group |(Americas)|East and|and |Waters|Nutrition|businesses
| | |North |sub- | | |
| | |Africa) |Saharan| | |
| | | |Africa)| | |
| | | | | | | |
Sales 9M-2017 | | | | | | |
(CHF (Swiss |65'272 |20'490 |11'821 |11'853 |6'150 |7'711 |7'247
Francs) | | | | | | |
million) | | | | | | |
---------------+ | | | | | |
Sales 9M-2016 | | | | | | |
(CHF (Swiss |65'514 |20'086 |13'046 |11'623 |6'134 |7'707 |6'918
Francs) | | | | | | |
million) | | | | | | |
---------------+ | | | | | |
RIG (Real | | | | | | |
Internal |1.8% |0.3% |1.4% |3.6% |2.1% |0.4% |5.0%
Growth) | | | | | | |
---------------+ | | | | | |
Pricing |0.8% |1.0% |0.5% |1.7% |0.1% |0.6% |0.1%
---------------+ | | | | | |
Organic growth|2.6% |1.3% |1.9% |5.3% |2.2% |1.0% |5.1%
---------------+ | | | | | |
Net M&A | | | | | | |
(Mergers and |-2.6% |-0.7% |-10.5% |-0.5% |-0.4% |-0.4% |-0.6%
Acquisitions) | | | | | | |
---------------+ | | | | | |
Foreign |-0.4% |1.4% |-0.8% |-2.8% |-1.7% |-0.4% |0.3%
exchange | | | | | | |
---------------+ | | | | | |
Reported sales|-0.4% |2.0% |-9.4% |2.0% |0.1% |0.2% |4.8%
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 (Real Internal Growth), pricing and organic
growth to better reflect the underlying business performance.
Nine-month sales overview by product
| |Powdered | |Milk |Nutrition|Prepared| |
| Total |& liquid |Water|products|& Health |dishes &|Confectionery|Petcare
| Group |beverages| |& ice |Science |cooking | |
| | | |cream | |aids | |
| | | | | | | | |
Sales | | | | | | | |
9M-2017 | | | | | | | |
(CHF |65'272|14'745 |5'758|9'891 |11'197 |8'614 |5'978 |9'089
(Swiss | | | | | | | |
Francs) | | | | | | | |
million)| | | | | | | |
---------+ | | | | | | |
Sales | | | | | | | |
9M-2016 | | | | | | | |
(CHF |65'514|14'417 |5'735|10'779 |11'022 |8'812 |5'929 |8'820
(Swiss | | | | | | | |
Francs) | | | | | | | |
million)| | | | | | | |
---------+ | | | | | | |
RIG | | | | | | | |
(Real |1.8% |2.0% |2.3% |0.8% |1.9% |1.4% |1.4% |2.7%
Internal| | | | | | | |
Growth) | | | | | | | |
---------+ | | | | | | |
Pricing |0.8% |1.5% |0.1% |1.7% |0.4% |1.7% |-1.4% |0.3%
---------+ | | | | | | |
Organic |2.6% |3.5% |2.4% |2.5% |2.3% |3.1% |0.0% |3.0%
growth | | | | | | | |
--------------------------------------------------------------------------------
Contacts:
Media: Robin Tickle Tel.: +41 21 924 2200
Investors: Steffen Kindler Tel.: +41 21 924 3509
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
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: 19.10.2017 - 07:16 Uhr
Sprache: Deutsch
News-ID 564286
Anzahl Zeichen: 28720
contact information:
Town:
Vevey
Kategorie:
Business News
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