FDBusiness.com

Strong Swiss Franc Impacts Nestlé’s First Half Performance

 Breaking News
  • HKScan Opens New €80 Million Poultry Plant HKScan, the Nordic meat group, has just opened its new, state-of-the-art poultry unit at Rauma in Finland. Valued at over €80 million, the new facility is the largest investment in HKScan’s history. Indeed, the state-of-the-art Rauma unit ranks among the most significant investments in the history of the Finnish food industry. Jari Latvanen, president and chief [...]...
  • Record Growth For UK Food and Drink Exports in First Half of 2017 The first half of 2017 saw exports of all UK food and drink grow to £10.2 billion, up 8.5% on the first half of 2016. This represents the highest first half exports value on record. The UK’s top 3 export products are whisky, salmon and beer. Contrary to recent export trends, stronger growth was reported [...]...
  • Nurturing Locally, Growing Globally – International Meat Congress ICoMST 2017 in Cork The 63rd International Congress of Meat Science and Technology (ICoMST 2017) took place at the Rochestown Park Hotel, Cork, during August 13-18, 2017 and was chaired by Teagasc’s Assistant Director of Research Declan Troy. Over 450 papers were presented at the congress, many by Teagasc researchers. The role of meat in strategies to achieve a sustainable diet [...]...
  • Tempting Batters Now With Clean-label Benefits A leading German natural starch producer, KRÖNER-STÄRKE, perhaps better known as a natural, starch supplier for bread manufacturers, has turned its attention to the convenience market. With a view to cleaning-up the unhealthy image of breaded or battered foodstuffs, the company has succeeded in developing specialist wheat starches which allow food processors to formulate on-trend, [...]...
  • B&R is Introducing a Hypervisor For Its Automation System B&R is introducing a hypervisor for its automation system. This software allows Windows or Linux to run alongside B&R’s own real-time operating system. That enables you to combine the control and HMI applications on a single PC, for example, or have an industrial PC double as both a real-time controller and an edge controller that [...]...
  • Florette Further Expands its UK Business In line with its strategy to be a major player within the UK fresh produce category, Florette UK & Ireland (part of the French Agrial group) has acquired the Wigan site of MyFresh Prepared Produce, a producer of a wide range of salad and vegetable products. MyFresh, Wigan, which employs almost 300 people and was [...]...

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

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements