Vladimír Urbánek (Kurzy.cz)
World markets  |  April 18, 2013 10:35:06

Nestlé had the weakest growth in Q1 for the last four years


World number one food, Nestlé announced that 1Q of this year grew its sales by 4.3%, which was the lowest since 2009, it fell short of market expectations set in this respect to growth of 4.7%.
The total amount of offered products grew by 2.3%, which was the lowest since 3Q11.

According to the company's management was weaker sales growth primarily due to weaker interest in emerging markets. Sales grew by 4.4% in Asia Pacific and Africa. The market for these areas allowed for growth to a level of 11%.

Four of the seven major product groups in 1Q failed long-term sales target revenue growth of 5-6%. It concerned divisions beer, bottled water, milk and ice cream. Water Division Revenues grew by only 1.8% compared to 8% in 1Q12 under the negative influence of a price war in the sector in the USA and the later arrival of spring.
Sales Business Division includes products such as Nespresso grew by 4.2%, which was less than half the growth generated in the course of 2012. The first time in four quarters, growth has not reached the level of at least 10%.

Sales in Europe grew by 1.5%, sales in the Americas grew by 5.3%.

Sales nutrition division grew in Q1 by 7.6%, sales division of food preparations and kitchen utensils declined by 0.1%. The largest increases were recorded division products for pets and to 7.9%.

The rise in prices contributed to the sales growth of 2 percent compared to 4.4 percentage points in 4Q12. Market estimated contribution at 1.2%.

Shares Nestlé respond to the report of slight weakening. Since the beginning of the title attributes appreciation of about 5.9%.

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