Keystone-SDA
Nestlé’s organic growth in the first half is mainly price increases applied by the Veveysan giant of food to compensate for the increase in raw materials. In terms of volumes, however, the group stagnated.
(Keystone-ATS) During the review period, organic growth reached 2.9%. The price effect contributed 2.7%, “due to our price adjustment to deal with the cost of inputs in the categories linked to coffee and cocoa,” read Thursday in a press release.
Confectionery and coffee were the largest contributors, supported by price effects of 10.6% and 6% respectively. For the other categories, organic growth has been more modest, carried by pet products and waters, while culinary products display a withdrawal.
The real internal growth (RIG), reflecting the evolution of volumes, was 0.2%, illustrating the more moderate demand for consumers. This stagnation also reflects, in the short term, the adaptation of consumers and customers to price increases.
By region, organic growth in developed markets reached 1.8%, due to real internal growth of 1.0%and a price effect of 0.8%. In emerging markets, organic growth reached 4.5%, with a price effect of 5.6%and actual internal growth of -1.1%.
Total turnover decreased 1.8% over one year to 44.2 billion francs, due to a negative effect of 4.7% linked to exchange rates, taking into account the significant appreciation of the franc during the period. “The latter has strengthened by almost 10% against the dollar during the second quarter,” said financial director (CFO) Anna Manz, in preliminary remarks to the presentation to analysts.
