Advertise with fastmoving.co.za
 
 

Food group Nestlé confirmed its full-year guidance after organic sales growth accelerated to 2.8 percent in the first quarter of 2018.
Food group Nestlé confirmed its full-year guidance after organic sales growth accelerated to 2.8 percent in the first quarter of 2018.

Nestlé confirms outlook as volume growth picks up

RETAILER NEWS

ESM - Apr 19th 2018, 12:15

Food group Nestlé confirmed its full-year guidance after organic sales growth accelerated to 2.8 percent in the first quarter of 2018, helped by improving volumes. 

Packaged food companies have seen their sales slow as consumers prefer fresh foods and have reacted by cutting costs, divesting underperforming businesses and increasing innovation efforts.

The maker of KitKat chocolate bars and Maggi soups confirmed its target to grow organic sales by 2-4 percent this year and improve its trading operating margin.

Organic Growth

Quarterly organic growth of 2.8 percent, which strips out currency swings and portfolio changes, was ahead of the average estimate of 2.5 percent in a Reuters poll and up from 1.9 percent in the final quarter of 2017.

Volume growth picked up to 2.6 percent, from 1.2 percent in the final quarter of 2017, but prices rose by only 0.2 percent, Nestlé said in a statement. Price pressures were illustrated by a price row with European retailers.

Growth in the Americas accelerated to 1.2 percent and Asia was also better than the previous quarter at 4.7 percent, while Europe, the Middle East, and North Africa slowed to 2.2 percent, hit by declining prices, Nestlé said.
ESM 

Read more about: switzerland | sales | nestle | growth

Related News

Rhodes Food Group's turnover rises amid healthy international growth
16/09/2019 - 11:14
The international turnover of Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, rose 13.4% in the 10 months to end-July, boosted by a weaker rand and exports of fruit snacks to the US.

4 reasons to be hopeful about South Africa’s economy
12/09/2019 - 14:40
Markets responded positively to South Africa’s economic growth rebounding in the second quarter, up 3.1%, and 0.9% for the year to June 2019.

British American tobacco to cut more than 2000 jobs
12/09/2019 - 10:28
British American Tobacco plans to cut 2 300 jobs around the world, the company announced.

Lego's sales bounce back with the help of Marvel superheroes
04/09/2019 - 09:11
Models of superheroes and villains from Marvel’s Avengers movies helped lift first-half sales at Lego, as the Danish toymaker continued its turnaround drive with investments in China, India, the internet and new stores.

Foschini's cash sales climb, but credit is under pressure
03/09/2019 - 13:58
The JSE-listed clothing retailer the Foschini Group [JSE:TFG] announced a 14.1% increase in cash sales in its South African operations in the first 21 weeks of 2020, while sales on credit only rose 0.9%.