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Nestlé has reported that their sales increased by 5.3% to CHF 45.2 billion during the first half of 2013.
Organic growth was 4.1%, composed of 2.7% real internal growth and 1.4% pricing. Acquisitions, net of divestitures, added 2.1% to sales, whilst foreign exchange had an impact of -0.9%.
Commenting on the reuslts Paul Bulcke, Nestlé CEO, argued that in the first half of 2013 the company “delivered a balanced performance, both top and bottom line, in an environment of lower growth and lower input costs. Organic growth was somewhat muted, reflecting lower pricing by our markets, as we leveraged softer input costs to meet the expectations of today’s more value conscious consumers.
“This, combined with substantially increased investment behind our brands, delivered stronger volume growth momentum, whilst at the same time we were able to improve the operating margin. We expect this growth momentum to continue in the second half, allowing us for the full year to deliver, in line with our commitments, around 5% organic growth with an improvement in margins and underlying earnings per share in constant currencies.”
Full results included:
- Sales up 5.3% to CHF 45.2 billion, 4.1% organic growth
- Real internal growth up to 2.7% for the first half: all three geographies contributed
- Trading operating profit +6.8% to CHF 6.8 billion, margin +20 basis points to 15.1%
- Marketing spend +60 basis points; consumer facing spend +15% in constant currencies
- Earnings per share +3.4%; +7.2% underlying in constant currencies
- Operating cash flow of CHF 5 billion
- 2013 outlook: around 5% organic growth with an improvement in margins and underlying earnings per share in constant currencies.
