Strong Swiss Franc Impacts Nestlé’s First Half Performance

 Breaking News
  • Ornua Delivers Record Revenue Ornua, Ireland’s largest exporter of Irish dairy products which supplies to over 110 countries worldwide, has reported record revenue of €2.1 billion for the year ended 30 December 2017. It marks the first year of Ornua’s new five-year growth plan, ‘Ornua 2021’, which positions the business as a leading global dairy organisation that delivers results [...]...
  • Danish Crown Becomes European Market Leader in Pepperoni Toppings For Pizzas Danish Crown has acquired the Danish pepperoni giant DK-Foods to become the European market leader in pepperoni toppings for pizzas. DK-Foods will operate as a separate business unit under Danish Crown’s subsidiary Tulip Food Company and will spearhead the group’s global focus on pizza toppings. Pizza is the favourite choice of fast food in Denmark, and [...]...
  • Iceland Seafood International Acquires Oceanpath Iceland Seafood International is acquiring Oceanpath Group, the leading fresh fish company in Ireland owning the iconic Dunn’s of Dublin brand, which has been operating since 1822. The acquisition marks a significant step in Iceland Seafood International’s strategy of delivering strong organic growth combined with strategic acquisitions of first rate seafood companies into the group. Iceland [...]...
  • KHS Presents Innovative Block Systems For the Sensitive Range Yoghurt is no longer spooned out of the pot but drunk. Breakfast is no longer just eaten at the kitchen table but also on the hoof. And it should all be as healthy and sustainable as possible. This is one of the reasons why the demand for smoothies, milk and dairy products is steadily growing. [...]...
  • MOGUNTIA Establishing New Future-oriented IT Infrastructure With Infor Infor, a leading provider of industry-specific cloud applications, has announced that MOGUNTIA FOOD GROUP, a spice producer focusing on meat processing based in Basel, Switzerland, has decided to introduce Infor’s Food & Beverage suite in the cloud to consolidate its IT infrastructure. This will help enable MOGUNTIA to adhere to customary certifications more efficiently and [...]...

Strong Swiss Franc Impacts Nestlé’s First Half Performance

Strong Swiss Franc Impacts Nestlé’s First Half Performance
August 08
10:00 2014

Nestlé has reported a 4.8% drop in sales to SFr43 billion (Eur35.4 billion) for the first half of 2014 as the strong Swiss Franc continued to have a substantial negative impact on the group’s results. However, Nestle delivered organic sales growth of 4.7%, composed of 2.9% real internal growth and 1.8% pricing during the period.

Trading operating profit was SFr6.4 billion and the reported trading operating profit margin was 15.0% – down by 10 basis points – but was up by 30 basis points in constant currency terms.

Nestlé’s organic sales growth was broad-based: 4.9% in the Americas, 1.4% in Europe, and 7.5% in Asia, Oceania and Africa. Globally, the businesses in developed markets grew 0.6%, whilst emerging markets grew 9.7%. The real internal growth was 2.4% in the Americas, 2.3% in Europe and 4.2% in Asia, Oceania and Africa.

The newly established Nestlé Skin Health, based on the Swiss group’s Galderma business, will reinforce Nestlé’s long-term strategic ambition to be the leading nutrition, health and wellness company. This investment complements other value-added growth platforms in Nestlé’s portfolio including Nestlé Health Science, created three years ago to drive innovation in the area of personalised nutrition. Nestlé Skin Health has been further strengthened with the acquisition of the full rights to commercialise several key aesthetic dermatology products in the US and Canada.

Paul Bulcke (pictured), chief executive of Nestlé, comments: “We delivered solid, broad-based organic growth, driven by real internal growth and pricing in what is still a very volatile trading environment. We continued to drive the growth momentum with innovation, increased support behind our brands, and a focus on efficiencies.”

He continues: “The creation of Nestlé Skin Health with the Galderma business expanded our nutrition, health and wellness strategy, reinforcing our long-term strategic ambition to improve people’s lives through science-driven innovation.”

Nestlé plans to buy back SFr8 billion shares in a programme that will start this year and continue into 2015, providing additional competitive returns for shareholders.

Nestlé has confirmed its outlook for the full year – organic growth around 5% and improvements in margins, underlying earnings per share in constant currencies and capital efficiency.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 21, 2018World Olive Oil Exhibition
  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
  • April 5, 2018Slow food The forum for good taste
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here