FDBusiness.com

Solid Sales Growth and Bumper Profit at Nestle

 Breaking News
  • HKScan Strengthens its Meals Offering With Investment in Estonia HKScan, the leading Nordic food company, plans to invest in its Rakvere unit in Estonia. The €8 million investment will go towards modernising the unit’s frying department, including the expansion of the building and the installation of new cooking and packaging lines enabling implementation of new technologies and packaging solutions. Construction is to commence in [...]...
  • Food and Drink is at the Heart of the UK’s Largest Packaging Show Packaging Innovations, Empack and Label&Print returns to Birmingham’s NEC on 28 February-1 March 2018, and is set to be the most innovative show to date. With over 290 exhibitors already signed up, the UK’s largest annual event for the entire packaging supply chain will feature the latest industry innovations and technologies, alongside a major free-to-attend [...]...
  • AGRO Merchants Group Acquires Grocontinental AGRO Merchants Group, a global leader in cold storage and logistics solutions, announced today the acquisition of UK-based Grocontinental Limited. This transaction reinforces AGRO’s position as the leading cold storage and logistics provider in the United Kingdom and Ireland, deepens its commodity expertise, and substantially enhances its value-added service offerings for customers. David Grocott and Linda Grocott, third generation owners of [...]...
  • Trade Fair and More – The Event and Congress Programme For Anuga FoodTec 2018 Resource efficiency will be the primary focus of Anuga FoodTec 2018, the leading international supplier fair for the food and beverage industry, which will be held in Cologne, Germany from 20 to 23 March 2018. Around 1,700 suppliers from more than 50 countries will be presenting their new products for the production and packing of [...]...
  • TINE to Invest €77 Million in New Jarlsberg Plant in Ireland TINE, Norway’s largest farmer-owned dairy co-operative, is to invest €77 million in a dairy with the capacity to produce 20,000 tonnes of Jarlsberg cheese a year. The goal is to secure and strengthen Jarlsberg sales outside of Norway as export supports are phased out in 2020. This will make export of Jarlsberg from Norway unprofitable. “Jarlsberg [...]...

Solid Sales Growth and Bumper Profit at Nestle

Solid Sales Growth and Bumper Profit at Nestle
February 18
14:01 2011

Reporting growth across all regions and categories, Nestle achieved a 6.2% organic growth in 2010 group sales to SFr109.7b (Eur84.9b) with real internal growth of 4.6% and tripled net profits to SFr34.2b, reflecting the disposal of its Alcon shareholding. However, excluding the exceptional net profit of SFr24.5b from the Alcon disposal, 2010 group net profit was actually down 6.7% to SFr9.7b from SFr10.4b in 2009.

The continuing operations achieved organic sales growth of 6.0% and real internal growth of 4.4%. Food and Beverages achieved good growth with market share gains in all categories and regions. Organic growth in emerging markets stood at 11.5%, underlining the increasingly important role they will play in Nestle’s future development. Organic growth for Food and Beverages was 5.7% in the Americas, 3.7% in Europe and 10.2% in Asia, Oceania and Africa.

Nestle improved its group EBIT margin from continuing operations by 30bps to 13.4%, while increasing the investment behind its brands with marketing expenses up by 100bps, and consumer facing marketing spend up 13.2% in constant currencies. The improvement in EBIT margin was driven by sales growth and business mix, as well as by the achievement of operating efficiencies of over SFr1.5b through the Nestle Continuous Excellence programme.

Paul Bulcke, chief executive of Nestle.

During 2010, Nestle concluded acquisitions worth more than SFr5b, including Kraft’s frozen pizza business, Vitaflo (clinical nutrition products) and Waggin’ Train (dog snacks). Nestle invested SFr4.6b in its operations across the world with strong emphasis on emerging markets such as India, Indonesia, the Philippines, the Equatorial African Region and Poland.

Other highlights of the year included the creation of Nestle Health Science and the Nestle Institute of Health Sciences to pioneer a new industry between food and pharma, and the opening of a R&D Centre for biscuits in Chile. Nestle also completed its SFr25b three-year share buy-back programme and launched a new SFr10b programme.

“In 2010, we delivered another year of strong top and bottom line growth, outperforming the market. We increased investment in our brands, our operations and our people. We continued to drive efficiency and effectiveness in both developed and emerging markets while at the same time accelerating innovation, serving well over a billion consumers a day across the world,” comments Paul Bulcke, chief executive of Nestle.

He continues: “We are starting 2011 with continued momentum, well placed to face uncertainties ahead, including volatile raw material prices. We are therefore confident of achieving the Nestle Model in 2011 – organic growth between 5% and 6% and an EBIT margin improvement in constant currencies.”

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
  • January 17, 2018Dutch Organic Trade Fair
  • January 17, 2018Anfas Food Product
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements