Vevey / CH. (nsa) Swiss Nestle S.A. announced its financial results for the first quarter 2019. Highlights:
- Organic growth of 3.4 percent, with continued strong real internal growth (RIG) of 2.2 percent. Pricing increased to 1.2 percent, with significant improvement in Brazil and the United States.
- Total reported sales increased by 4.3 percent to CHF 22.2 billion (3M-2018: CHF 21.3 billion). Net acquisitions had a positive impact of 1.2 percent and foreign exchange reduced sales by 0.3 percent.
- Portfolio management fully on track. The strategic reviews of Nestle Skin Health and Herta charcuterie (cold cuts and meat-based products) are expected to be completed by mid- and late 2019, respectively.
- Full-year guidance for 2019 confirmed, with continued improvement in organic sales growth and underlying trading operating profit margin towards our 2020 targets. Underlying earnings per share in constant currency and capital efficiency are expected to increase.
CEO Mark Schneider: «We are pleased with Nestle’s solid organic sales growth in the first quarter, building on our full-year 2018 momentum. Our increased speed, innovation for a changing world and execution focus are clearly paying off. We confirm our outlook for the year.»
«In the quarter, we announced the launch of a new range of 24 premium coffee products under the Starbucks brand. The Nestle and Starbucks teams did an outstanding job and developed these products in just 6 months.»
He added: «The notion of business as a force for good resonates very strongly inside Nestle. Starting with this report, we will highlight each quarter how Nestle creates shared value. We will begin by showing how Nespresso delivers on its commitment to quality and sustainability.» For further details please read Nestle’s PDF file below.