Nestle saw strong performance from Perrier

Nestle saw strong performance from Perrier

Nestle Waters has posted a return to growth in Europe in the first quarter of 2010.

For the three-month period to the end of March, the unit confirmed today (22 April), sales reached CHF2bn (US$1.86bn), representing organic growth of 2.5% year-on-year.

The firm said high levels of growth led to market share gains, with strong performances from S. Pellegrino, Perrier and Contrex.

“Emerging markets continued to deliver double-digit growth under the Nestle Pure Life brand. Nestle Pure Life also continued to grow in the US, while regional brands there were impacted by price-led competition,” the unit said.

Overall, the Nestle group recorded an increase in first quarter sales, boosted by performances in emerging and developing markets. For the three-month period, group sales amounted to CHF26.3bn, representing 6.5% organic growth.

In the Americas, sales increased 5.1% to reach CHF7.6bn, while in Europe the firm recorded sales of CHF5.3bn, representing 3.4% organic growth.

Commenting on the coming year, group CEO Paul Bulcke reconfirmed the group’s outlook for 2010.

“For 2010 as a whole, we expect our food and beverages business to achieve higher organic growth than in 2009 as well as a further EBIT margin improvement in constant currencies,” he said.

Click here for the full release and check back later for further insight into Nestle’s first quarter results.