Back to Press releasesVevey,Apr 25, 2003
In 2002, Nestlé Waters strengthens its leadership in the bottled water sector thanks to 9.6% organic growth in sales, reaching 7.7 billion swiss francs
Nestlé Waters maintains this rythme in the first quarter of 2003, with double digit organic growth at almost 11%
- Growth, at constant perimeter and exchange rates, reached 9.6%, above market growth
- EBITA of 696 million Swiss francs
- Seven acquisitions bringing additional sales of 135 million Swiss francs
- Distribution strengthened in Home & Office Delivery (HOD) in Europe and in small formats in the U.S.A.
1st quarter 2003
- Growth, at constant perimeter and exchange rates, reached 10.9%,
- Consolidation of leadership in the HOD channel in Europe via two key acquisitions
- Numerous innovations marked by the launch of "Eau de Perrier"
2002 results analysis
Nestlé Waters sales grew on a comparable basis by 9.6% in 2002.
Sales at 31st December reached 7.7 billion Swiss francs, an increase of 4.1% versus 2001. Exchange rates had a negative impact of 7.5%, while change in the sales perimeter had a positive impact of 2%.
In absolute terms, Nestlé Waters’ EBITA increased by 11.9% versus 2001, reaching 696 million Swiss francs and enabling the company to achieve a margin of 9%, compared to 8.4% at the end of 2001.
Nestlé Waters’ reinforces its world leadership in the bottled water sector, with a 17% market share in value.
2002 sales by region and brand (at constant perimeter and exchange rates) were as follows:
2002 sales by region and brand
(1) Growth as per constant perimeter and exchange rates.
||% OF SALES
||ORGANIC GROWTH (1)
| North America
| South America
| Asia / Oceania
| Africa / Middle East
| International (5)
| Nestlé (2)
| Local (10)
Most regions contributed to overall growth, despite an often difficult market context:
- Europe: weak growth of the premium brand segment, development of low-priced brands,
- North America: arrival in force of Cola groups in the bottled water business,
- South America: highly unfavourable economic situation,
- Asia and Africa / Middle East: high price competition.
In all regions, Nestlé Waters recorded growth rates ahead of market growth.
In addition, each type of brand (Nestlé, international, local) contributed positively to Nestlé Waters’ performance. Accounting for just 2.5% of overall sales, Nestlé brands showed the strongest growth, currently posting sales close to 700 million litres in over 20 countries.
These growth rates demonstrate the performance of Nestlé Waters’ business model. This model, focused on water, makes Nestlé Waters a global bottled water player, thanks to its worldwide network of brands present in all distribution channels.
Nestlé Waters’ leadership is concentrated in Europe and North America (regions where economic risk is limited, incomes are high and growth prospects are robust) through the development of strong brands, the HOD business, and acquisitions that offer real opportunities for synergy.
In other regions, Nestlé Waters’ development strategy is based on growth of the Nestlé PURE LIFE brand, a program of targeted acquisitions, and a strengthening of local positions.
In 2002 this strategy produced some remarkable results:
Nestlé Waters made seven acquisitions – mainly in the HOD sector – in seven countries, adding 135 million Swiss francs in sales.
By the end of 2002, the brand portfolio totalled 77 brands, thanks to :
- the addition of new local brands such as Saint Springs in Russia or Aqua Spring in Greece,
- the emergence of Acqua Panna amongst the international brands,
- three new launches of Nestlé Aquarel in Hungary, Finland and Switzerland, as well as in HOD in France, Germany and Italy,
- the opening of five new Nestlé PURE LIFE markets (U.S.A., Canada, Egypt, Turkey, and Uzbekistan).
2002 also saw its share of innovations, symbolised by the successful launch of Perrier Fluo in France in the first quarter. Available in three flavours, Perrier Fluo surpassed sales forecasts almost immediately, winning many awards from the trade along the way. Above all, Perrier Fluo enabled the brand to continue to improve industrial efficiency and performance, following a successful launch each year.
On the distribution front, Nestlé Waters accelerated expansion in the European HOD sector. Recording an annual growth of 25–30%, HOD in Europe has become one of Nestlé Water’s pillars of development since 2000. With its experience and leading position in the U.S.A. – where HOD accounts for 30% of bottled water sales – Nestlé Waters has established significant positions in seven European countries in less than three years, thanks to several acquisitions. At the end of 2002, these positions give the group a solid base and a European customer network necessary to take advantage of the sector’s growth potential.
With regard to distribution in the small format sector, Nestlé Waters posted strong organic growth in the U.S.A. in 2002. Growth reached 18.1% on a comparable basis, enabling Nestlé Waters to increase its market share by 4.6%.
Finally, to complement and support this growth, Nestlé Waters continued to improve operational efficiency, implementing a number of cost reduction and productivity improvement programs. 2002 also marks the year of the opening of the first Nestlé water product technology centre (PTC,Water) in Vittel (France).
1st quarter 2003 sales analysis
2003 has started off at the same rhythm as 2002, despite a difficult economic and political climate. Nestlé Waters’ sales reached 1.719 billion Swiss francs, an increase of 10.9% at constant perimeter and exchange rates. This double digit organic growth conveys the validity of the Nestlé Waters’ business model.
The first quarter 2003 equally registers some striking facts in terms of innovations and acquisitions.
Following in the footsteps of Perrier Fluo, in 2003 Perrier is maintaining a strong pace of innovation and announces today the launch in the coming weeks of a new product on the lightly sparkling water segment in France and in Belgium. Intended to widen consumption occasions for the brand, this latest innovation is know as « Eau de Perrier » (see attached press release).
In terms of acquisitions, Nestlé Waters reinforces its HOD organisation in Europe thanks to the purchase of Powwow and Clear Water. With Powwow, the European HOD leader and Clear Water, the leader of the HOD activity in Russia, Nestlé Waters now has a solid base for development, which with over 550 000 coolers, enables the company to occupy an undeniable leadership in this new activity in Europe.
Confident in the Nestlé Waters’ business model, CEO Frits van Dijk, recalls the 2003 objectives, “We will maintain a growth rate higher than that of the market; improve operating margins; continue to develop Nestlé brands to make them the top brands in their category in the following years; and successfully complete the integration process of the latest HOD acquisitions.”
For additional information: www.nestle-waters.com/
- Nestlé Waters media contacts:
- Candy MILLER / Henriette MOUREAU
- Tel : + 33 (0)1 41 23 39 74 / + 33 (0)1 41 23 68 46
- email : email@example.com