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Nestlé Reports Solid Start to 2018

Nestlé Reports Solid Start to 2018


VEVEY, SWITZERLAND
Monday, April 23rd, 2018

After making efforts to restructure portions of its business in the United States and Brazil, Nestlé has announced a strong start to the 2018 year—reporting growth across all the companies categories.

“We are pleased to report a solid start to the year, with all regions contributing to our growth. Our volume growth improved noticeably while pricing remained soft. We are encouraged by our innovation pipeline, continued progress with the implementation of our portfolio management strategy, and our efficiency initiatives. Combined with the organic sales development, they put us on track for our 2018 guidance and our 2020 mid-term targets.”

Nestlé

Highlights from the report include the following:

  • Organic growth of 2.8%, with 2.6% real internal growth (RIG) and pricing of 0.2%.
  • Total sales increased by 1.4% on a reported basis to CHF 21.3 billion ($21.77 billion USD). Net acquisitions had a positive impact of 0.2% and foreign exchange reduced sales by 1.6%.

The company noted that its portfolio management strategy was on track, with the acquisition of Atrium Innovations completed at the beginning of March, the sale of the company’s U.S. confectionery business completed at the end of March, and agreements in place to acquire Terrafertil and to divest the waters business in Brazil in the near future.

The company also confirmed its full-year guidance for 2018 and reported positive growth for all of its categories, with petcare, coffee, and Nestlé Health Science leading the way. In the U.S, Nestlé noted that, after the sale of its confectionary business, the company was able to return to positive growth. The company undertook a number of strategic investments throughout the quarter—including investments in e-commerce and new facilities in the U.S.

For more dairy, deli, bakery, and specialty food news, stay tuned to Deli Market News.

Nestlé
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