SWITZ: Nestle chief Bulcke hails H1 performance
- Waters division returns to growth
- Group sales climb 6.1%
- Net profits up 7.5%
Nestle booked a 7.5% increase in net profits
Nestle CEO Paul Bulcke said this morning (10 August) that the Swiss food giant had enjoyed a "very successful" first half of the year, with sales in its waters division climbing by nearly 3%.
The world's largest food maker reported a 7.5% increase in net profits to CHF5.5bn (US$5.2bn), with EBIT up 10.6% at CHF6.7bn, for the six months to the end of June. Nestle's EBIT margin climbed by 80 basis points to 15.1% despite higher marketing investment thanks to cost control.
Sales grew by 6.1% on an organic basis to CHF55.3bn. On a reported basis, sales were up 5.9% on the same period of 2009.
The firm’s water’s division returned to growth after a couple of years in which consumption fell, with sales climbing 2.5% organically to CHF4.7bn.
Nestle said it achieved positive growth in Europe and in North America its Pure Life brand continued to perform well.
Looking ahead, Bulcke said: "We have increased investment in our brands, people and capabilities and have prepared the company for a more challenging second half, which allows me to reconfirm our earlier full-year guidance for [Nestle's] food and beverages [business]: organic growth of around 5% combined with an increase in EBIT margin in constant currencies."
For the full earnings statement from Nestle, click here. Check back later for coverage of Nestle's first-half results conference.
The Chilean drinks giant part-owned by Heineken, Compania Cervecerias Unidas, has recorded a drop in full-year profits following the sale of its stake in Aguas CCU Nestle....
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