3rd Quarter Results
23 10월 2003 - 4:08PM
UK Regulatory
RNS Number:2180R
Nestle SA
23 October 2003
Nestle Group: Strong Organic Growth
For the First Nine Months of 2003
* Strong organic growth of 5.4 percent
* Constant currency sales up by 6.8 percent
* Sales in Swiss francs stood at CHF 64.6 billion, down by 2.4 percent
due to an adverse foreign exchange impact of 9.2 percent
Peter Brabeck, CEO of Nestle: "This is a good set of sales figures, building on
the solid foundations laid in the first half, and meeting our stated
expectations of a slightly improving trend in the second half. As such, they
leave us well placed to achieve our target of 5 to 6 percent organic growth,
combined with an improved EBITA margin, for the current year."
Vevey, October 23, 2003 - Consolidated sales of the Nestle Group reached CHF
64.6 billion during the first nine months of 2003. At constant exchange rates,
sales grew by 6.8 percent, composed of real internal growth of 2.3 percent and
price increases of 3.1 percent, as well as a contribution from acquisitions, net
of divestitures, of 1.4 percent. This strong pricing demonstrates the Group's
commitment to protect EBITA margins. The negative exchange rate impact improved
somewhat from 12.6 percent in the first half to 9.2 percent for the first nine
months, but nevertheless resulted in a 2.4 percent dip in consolidated Swiss
franc sales.
Sales by Management Responsibilities and Geographic Area
Jan.-Sept. Jan.-Sept. Jan.-Sept. Jan.-Sept.
2003 2002 2003 2003
Organic Growth Real Internal Growth
in CHF billion (%) (RIG) (%)
Food
* Europe 21.4 21.0 + 2.3 + 0.2
* Americas 19.8 21.4 + 5.9 + 0.5
* Asia, Oceania and Africa 10.6 11.2 + 4.2 + 1.5
Nestle Waters 6.4 6.1 + 10.9 + 10.3
Other Activities * 6.4 6.6 + 11.1 + 9.2
Total 64.6 66.2 + 5.4 + 2.3
All calculations based on non-rounded sales figures
* Essentially pharmaceutical products, joint ventures and "Trinks" (Germany)
Zone Europe achieved organic growth of 2.3 percent. Eastern Europe reached 10.0
percent growth, outperforming more mature Western Europe, which delivered 1.6
percent.
Zone Americas achieved organic growth of 5.9 percent. In Latin America, the
strength of the Group's brands allowed it to increase prices in line with its
strategy to preserve margins in the face of the region's difficult economic
conditions. Organic growth for the region as a whole stood at 10.6 percent.
North America performed well, with 3.4 percent.
Zone Asia, Oceania and Africa achieved organic growth of 4.2 percent. In spite
of the disruption caused by SARS, Greater China grew by 8.0 percent, whilst
Africa, recovering from the slowdown caused by the troubles in Ivory Coast, grew
by 12.9 percent. The important Japanese market also saw the first signs of a
recovery.
Nestle Waters did well in all its key markets around the world, including in the
very competitive USA, and enjoyed 10.9 percent organic growth. Alcon achieved
9.4 percent organic growth.
Sales by Product Groups
Jan.-Sept. 2003 Jan.-Sept. 2002 Jan.-Sept. 2003
Real Internal Growth
in CHF billion (RIG) (%)
Beverages 17.5 17.5 + 5.7
Milk Products, Nutrition and Ice Cream 17.6 18.0 + 1.0
Prepared Dishes and Cooking Aids 11.5 11.3 + 2.0
Petcare 7.2 7.8 + 2.3
Chocolate, Confectionery and Biscuits 7.0 7.5 - 4.1
Pharmaceutical Products 3.8 3.9 + 6.8
Total 64.6 66.2 + 2.3
All calculations based on non-rounded sales figures
Product categories such as soluble coffee and frozen & chilled culinary products
performed well in the first nine months of the year, whilst ice cream and water
benefited from the exceptionally hot European summer. Chocolate, on the other
hand, was handicapped both by the hot weather and the price increases earlier in
the year in response to higher cocoa prices.
Outlook
Nestle is confident that it will achieve an organic growth rate of between 5 and
6 percent for 2003 as a whole. Furthermore the various cost-efficiency
initiatives, as well as GLOBE, are on track to reach their targets for 2003. The
Group expects the currency impact to stabilize in the final quarter and looks
forward to an EBITA margin improvement for the full year.
This information is provided by RNS
The company news service from the London Stock Exchange
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