First Quarter Results

Apr 20, 2012

Nestlé first-quarter sales: 7.2% organic growth, full-year outlook confirmed

• Sales of CHF 21.4 billion, 7.2% organic growth, 2.8% real internal growth
• 3.1% organic growth in developed markets, 13.0% organic growth in emerging markets
• Full-year outlook unchanged: organic growth of 5-6%, improved margin and underlying earnings per share in constant currencies

Paul Bulcke, Nestlé S.A. CEO commented: “As anticipated, 2012 is already confirming itself to be a challenging year. In many developed markets where consumer confidence is low, the trading environment is subdued whilst in most emerging markets, conditions remain dynamic and rich in growth opportunities. Our past and present investments, and continuing innovation, have enabled us to deliver good growth in the first quarter. This, together with the pricing effect for the rest of the year and a likely improved raw material environment in the second half, allows us to confirm our full-year outlook of delivering 5-6% organic growth together with an improvement in the year-end margin and underlying earnings per share in constant currencies’’

Following this announcement Paul Grimwood Chairman and CEO Nestlé UK&I said: “In the UK & Ireland household budgets continue to be squeezed with the outlook for 2012 remaining challenging. However, we are pleased with the progress made in the first quarter of this year with value growth in confectionery, beverages and food. Innovation throughout the business continues to be a driver of growth. There has been the expansion of the Maggi So Juicy and Herta ham ranges and in the last few weeks the launch of Rolo Blocks and Nescafe Azera. Innovation also comes in the form of Kit Kat ‘Choose a Chunky Champion’ which helped the brand grow 6.5%* and news of Nestlé removing all artificials from its entire confectionery range and the first confectioner to make its Easter egg range 100% recyclable.”

*Source: Symphony IRI Grocery Imp Outlets excl AOI p/e 24th March 2012

Click here to read Nestlé S.A. global press release