Nestlé: Strong Sales Growth Continues in the 1st Quarter 2002

   
Back to News archiveVevey,Apr 11, 2002

  • Consolidated sales up 10.1 percent
  • Organic growth of 5.0 percent
  • Real internal growth of 3.3 percent
  • Strong performance in water, Alcon and the joint-ventures
  • Peter Brabeck, CEO of Nestlé: "We are confident that we will again reach our real internal growth target of 4 percent and that Nestlé will once more improve sales and profits for 2002. In view of the growing weight of the water and the petcare businesses, we have decided to further increase transparency by adopting segment reporting for these strategically important activities."

The Nestlé Group's consolidated sales reached CHF 21.3 billion during the first three months of 2002, a 10.1 percent increase over the CHF 19.4 billion in the period January-March 2001, helped by the first-time inclusion of the sales of Ralston Purina which are consolidated since January 1st. At comparable structure and constant exchange rates, sales rose by 5.0 percent.

Cumulative real internal growth at the end of March amounted to 3.3 percent, building a solid base for achieving the Group's RIG objective of four percent.
All major currencies – with the exception of the Mexican peso and the US dollar – depreciated against the Swiss franc, resulting in an adverse foreign exchange effect of 2.8 percent on consoli-dated sales. In addition, Nestlé was able to increase prices by 1.7 percent in this period.
The largest single factor in the nominal sales growth, amounting to 7.9 percent, is represented by acquisitions clear of divestitures. It should be noted that Schöller sales are consolidated in Group sales starting March only.

Sales by Management Responsibilities and Geographic Area
  January-March 2002
in CHF millions
January-March 2001
in CHF millions
Changes (%) January-March 2002
Real Internal Growth (%)
Zone Europe  6 628  6 434  3.0  1.8
Zone Americas  7 154  5 785 23.7  2.1
Zone Asia, Oceania and Africa  3 633  3 624  0.3  2.6
Water *  1 740  1 556 11.8 10.8
Other Activities  2 156  1 953 10.4  7.9
Total 21 311 19 352 10.1  3.3
* Comprises only bottled water activities; the "Trinks" beverage distribution business figures among "Other Activities"

All geographic zones contributed to this growth; excellent progress was achieved in the water busi-ness as well as in pharmaceuticals. Eastern Europe continues to produce double-digit real internal growth.

Sales by Products Groups
  January-March 2002
in CHF millions
January-March 2001
in CHF millions
Changes (%) January-March 2002
Real Internal Growth (%)
Beverages  5 449  5 343  2.0  4.7
Milk/Nutrition  5 489  5 197  5.6  2.4
Culinary  3 789  3 629  4.4  2.4
Petcare  2 653  1 411 88.0  2.0
Chocolate/Confectionery  2 623  2 588  1.3  1.8
Pharma  1 308  1 184 10.5  9.7
Total 21 311 19 352 10.1  3.3

The petcare business showed strong growth of 88 percent, reflecting of course the Purina acquisition, but also real internal growth despite the intensive integration activities.

The first quarter was further marked by the first steps of the integration of Ralston Purina with the Friskies operation, by the successful conclusion of the Schöller acquisition in Germany and Western Europe as well as by the successful partial IPO for Alcon on the New York Stock Exchange. The Group looks with confidence at the current year. Unless there are major economic or monetary downturns, the Nestlé Group should again be able to report record sales and profits at the end of 2002.