Nestlé Portugal Achieves 'Best Ever' Performance In 2020
Nestlé Portugal ended 2020 with revenues of €565 million, up 4.2% year-on-year, which the business said was its strongest result to date.
The company benefited from the increase in household consumption of products such as coffee and cereals, which offset a 85% drop in sales in the HoReCa channel, which normally accounts for €85 million to €90 million in revenues.
Nestlé Portugal achieved a retail market share of 38.4% in the coffee capsules segment, up 5.7% on 2019.
Its overall share in all market categories in which it is present reached 35%, with the company seeing 19.7% growth in value sales, above the market average of 12.6%.
The company boosted its leadership position in all coffee categories (capsules, soluble and roasted), as well as cereals, cereal drinks, breakfast cereals, cereal bars, chocolate drinks, infant nutrition, and pet care.
Last year, capex at the business was €71 million, of which €16.5 million was spent on factory operations (new production lines and technology) and €55.6 million on marketing, making Nestlé Portugal the largest advertiser in the food and beverage industry in Portugal.
Production at its two Portuguese factories (Avanca and Porto) increased by 12% over the last three years (4% per year), both for the local and international markets. Last year’s production amounted to 52,000 tonnes, with exports worth €96 million (+7%).
During 2020, Nestlé Portugal covered 60% of its needs from local producers, such as cereals, packaging materials and services, equating to a total investment of €124 million.
This local purchasing strategy helped the Swiss multinational to reduce CO2 emissions from its transport operations by 53% per tonne of product over the past decade. Also, more than 90% of its packaging can now be recycled or reused.
In the area of sustainability, one of the group’s goals is to ensure that 50% of its raw materials are obtained through sustainable agricultural practices by the end of the decade. [Pic ©Moovstock/123RF.COM]
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine