Emerging market growth drives Nestle sales

Posted by Josette Dunn on 25th October 2010

Nestle has recorded an increase in sales for the first nine months of the year, driven by double-digit organic growth in emerging markets.

Business Growth

For the January to September period, group sales reached CHF82.8bn (US$85bn), representing growth of 6.1% on an organic basis and 4.5% of “real internal growth” – Nestle’s figure to measure the growth achieved without external funding and excluding pricing, currency exchange and acquisitions

Nestle’s food and beverage operations posted a 5.5% rise in sales in the Americas on an organic basis. In Europe, sales rose 3.3%, while in Asia, Oceania and Africa sales were up 10.7%.

Key drivers of growth included “deeper distribution in emerging markets, a strong pipeline of targeted innovation and the success of premium product initiatives around the world”, the firm said.

CEO Paul Bulcke added: “Our performance is the result of clear strategic alignment and focus on execution throughout the whole organisation, both in developed and in emerging markets.”

Bulcke reconfirmed Nestle’s full-year guidance of a 5% rise in sales on an organic basis combined with an increase in EBIT margin in constant currencies.

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