In the first three months of 2012, sales increased by 5.6% to CHF 21.4 billion (€17.8bn). Organic growth was 7.2%, composed of 2.8% real internal growth and pricing of 4.4%. Acquisitions net of divestitures, added 3% to sales, whilst foreign exchange had a negative impact of 4.6%.
Paul Bulcke, Nestlé CEO says, “As anticipated, 2012 is already confirming itself to be a challenging year. In many developed markets where consumer confidence is low, the trading environment is subdued whilst in most emerging markets, conditions remain dynamic and rich in growth opportunities. Our past and present investments, and continuing innovation, have enabled us to deliver good growth in the first quarter. This, together with the pricing effect for the rest of the year and a likely improved raw material environment in the second half, allows us to confirm our full-year outlook of delivering 5-6% organic growth together with an improvement in the year-end margin and underlying earnings per share in constant currencies.”
The company reported strong chocolate growth in Latin America, particularly in Brazil and Mexico, contributing to the region achieving double digit growth overall.
Asia, Oceania and Africa also achieved strong chocolate growth. Kit Kat performed well in Japan. The acquisition of Chinese confectionery company, Hsu Fu Chi, also contributed to growth.
Source: Sweets and Snacks Europe