News Column

Nestle SA Posts Positive Results in 2013

February 16, 2014

Goddy Egene



NestlÉ SA, the parent firm of Nestle Nigeria Plc, and the world's largest food company has reported sales of CHF92.2 billion and net profit of CHF10 billion for the year ended December 31, 2013. The company said Group's organic growth was broad-based with 5.1 per cent in the Americas, 0.8 per cent in Europe and 7.4 per cent in Asia, Oceania and Africa.

"Our business in developed markets grew 1.0 per cent, achieving sales of CHF 51.4 billion. Our emerging markets business grew 9.3 per cent, delivering sales of CHF 40.8 billion," the company said.

According to the company, NestlÉ waters delivered growth in all three geographies, with operating margin increasing by 50 basis points to 9.4 per cent due to the division's growth and a high level of efficiencies in manufacturing and procurement.

Nestle added that nutrition recorded sales of CHF 9.8 billion, showing 8.2 per cent organic growth, 4.5 per cent real internal growth; 20 per cent trading operating profit margin. According to the company, many of the largest brands such as Cerelac, NestlÉ NAN, S-26 and Illuma grew double-digit.

Commenting on the results, Group Chief Executive Officer of Nestle, Mr. Paul Bulcke, said the macro-environment in 2013 was one of soft growth, minimal in the developed world and below recent levels in the emerging markets.

"Our response was to increase brand support, accelerate innovation, and to ensure our pricing was sensitive to consumer needs. This gave impetus to our real internal growth and, together with efficiencies and structural cost savings, contributed to our margin improvement and strong cash flow. We also intensified our portfolio management which resulted in some charges in 2013 but ensures we are putting our people and resources behind the best opportunities," he said.

He said the long-term strategic direction is to be the leader in nutrition, health and wellness.

"We reinforced this strategy with the creation of NestlÉ Health Science, and we are extending it now to the field of specialised medical skin treatments by setting up NestlÉ Skin Health S.A" he said.

Bulcke said like 2013, this year will also be challenging.

"We will continue to be disciplined in driving our performance in line with the NestlÉ model of profitable growth and resource efficiency. I therefore expect our 2014 performance to be similar to last year and again weighted to the second half, outperforming the market, with growth around five per cent and improvements in margins, underlying earnings per share in constant currencies and capital efficiency," he said.


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Source: AllAfrica


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