Tough trading but Nestle nurtures newcomers
This year’s trading has proven a challenge for Nestle, although its first half report for 2005 showed strong organic growth of 5.2%.
Meanwhile, sales in Swiss francs increased 2.4 per cent despite negative impacts of currencies of -1.8 and divestitures of -1.0%. Consolidated sales grew to CHF 43,474 million, an increase of 2.4% over the same period last year.
Peter Brabeck-Letmathe, chairman and chief executive officer said,“Nestle’s results for the first half of 2005 are in line with our forecasts and underscore the Nestle model of combining a good level of organic growth with a sustainable improvement in operating performance. These results have been achieved despite continuing input cost pressures and difficult trading environments in a number of markets.
Zone Americas had an excellent start to the year with organic growth of 7.2%. Nestle’s Prepared Foods Company performed well as did the company’s recently acquired Purina PetCare Company and Dreyer’s Grand ice Cream Holdings. Nestle Waters in North America realised steady expansion of 5.9 per cent, while the European business recovered from last year’s poor growth levels.