DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

Nestlé: Slowdown In Emerging Markets Affects Full-Year Results

By square1
Share this article
Nestlé: Slowdown In Emerging Markets Affects Full-Year Results

Swiss food manufacturer Nestlé has issued a warning that it does not expect to reach its long-term targets this year.

Nestlé had previously predicted long-term underlying sales growth of 5-6%. The news comes as the manufacturing giant reports its slowest rate of sales growth in four years.

Sales rose by 2.7% to 92.2 billion Swiss francs (€75.5 billion) in 2013; underlying sales increased by 4.1%. The slowdown in European markets, and in emerging markets, were the key reasons given for the poor results.

Meanwhile, net profit decreased to 10 billion Swiss francs (€8.2 billion), due to restructuring and fluctuations in currency levels. However, the company recorded its strongest level of growth in the Asia, Africa and Oceania market; underlying sales rose by 7.4%.

US recorded a 5.1% rise in sales while European sales rose by 0.8%. The group recorded double-digit growth in Latin America.

ADVERTISEMENT

“Last year was challenging and 2014 will likely be the same,” said chief executive Paul Bulcke. Expected sales growth for 2014 was around 5%, he added, with some improvement in margin levels.

@ 2014 ESM Magazine

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.