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Nestlé reports three-month sales for 2018

  • Organic growth of 2.8%, with 2.6% real internal growth (RIG) and pricing of 0.2%.
  • Total sales increased by 1.4% on a reported basis to CHF 21.3 billion (3M-2017: CHF 21.0 billion). Net acquisitions had a positive impact of 0.2% and foreign exchange reduced sales by 1.6%.
  • Portfolio management strategy on track. The acquisition of Atrium Innovations was completed at the beginning of March and the sale of the U.S. confectionery business completed at the end of March.

Agreements reached to acquire Terrafertil and to divest the waters business in Brazil.

  • Full-year guidance for 2018 confirmed.
Total Group Zone EMENA Nestlé Waters Other  Businesses
Sales 3M-2018 (CHF m)

Sales 3M-2017 (CHF m) *restated

21’264 4’737 1’732 2’748
20’975 4’458 1’784 2’508


Organic growth

Net M&A

Foreign exchange

Reported sales growth

2.6% 2.6% -1.2% 5.2%
0.2% -0.4% 1.7% 1.2%
2.8% 2.2% 0.5% 6.4%
0.2% -0.1% -0.9% 2.7%
-1.6% 4.2% -2.5% 0.5%
1.4% 6.3% -2.9% 9.6%

* Effective as from 1 January 2018, Nestlé Nutrition is reported in the zones as a regionally managed business, with the Gerber Life Insurance business reported in Other Businesses. 2017 sales comparables have been restated mainly to reflect this change of management responsibility and the new accounting standards for revenue measurement following the implementation of IFRS 15.

Mark Schneider, Nestlé CEO: “We are pleased to report a solid start to the year, with all regions contributing to our growth. Our volume growth improved noticeably while pricing remained soft. We are encouraged by our innovation pipeline, continued progress with the implementation of our portfolio management strategy and our efficiency initiatives. Combined with the organic sales development, they put us on track for our 2018 guidance and our 2020 mid-term targets.”

Group sales

Organic growth reached 2.8%, and was within our guided range for 2018. Excluding the U.S. confectionery business, organic growth was 2.9%. RIG accelerated to 2.6% and continued to be at the high end of the food and beverage industry. Pricing was 0.2%, largely reflecting lower levels of inflation in emerging markets. Net acquisitions increased sales by 0.2% as the acquisition of Atrium Innovations was completed at the beginning of March. Foreign exchange had a negative impact of 1.6%. Total sales increased by 1.4% on a reported basis to CHF 21.3 billion. All categories had positive growth, led by petcare, coffee and Nestlé Health Science.

Zone Europe, Middle-East and North Africa (EMENA)      

  • 2% organic growth: 2.6% RIG; -0.4% pricing.
  • Western Europe posted positive RIG. Organic growth was impacted by negative pricing.
  • Central and Eastern Europe saw mid single-digit organic growth, based on strong RIG.
  • Middle East and North Africa improved to high single-digit organic growth, with positive RIG and pricing.


Sales 3M-2018 Sales 3M-2017 RIG Pricing Organic




Foreign exchange Reported growth
Zone EMENA CHF 4.7 bn CHF 4.5 bn 2.6% -0.4% 2.2% -0.1% 4.2% 6.3%


Organic growth of 2.2% was consistent with the level achieved over the past two years, driven by strong RIG of 2.6%. Deflationary trends in both Western Europe and Eastern Europe resulted in negative pricing of 0.4% for the Zone. Net divestments reduced sales by 0.1%. Foreign exchange had a positive impact of 4.2%. Reported sales in Zone EMENA increased by 6.3% to CHF 4.7 billion.

Zone EMENA continued its solid growth with an acceleration in the Middle East, but saw some softness in Western Europe. Central and Eastern Europe maintained mid single-digit growth. Strong RIG was a result of good growth in petcare, particularly in Russia, and in coffee, which benefitted from the successful relaunch of Nescafé Gold in the United Kingdom. Infant formula and dairy performed well in the Middle East as well as Central and Eastern Europe. Pricing pressure was broad-based across categories, particularly reflecting strong comparables in coffee following price increases taken in early 2017.

 Nestlé Waters

  • 5% organic growth: -1.2% RIG; 1.7% pricing.
  • North America with positive organic growth, driven mainly by pricing. RIG was slightly positive.
  • Europe saw a soft quarter, with weak RIG and positive pricing.
  • Emerging markets reported soft organic growth as China and Brazil had negative sales development.


Sales 3M-2018 Sales 3M-2017 RIG Pricing Organic




Foreign exchange Reported growth
Nestlé Waters CHF 1.7 bn CHF 1.8 bn -1.2% 1.7% 0.5% -0.9% -2.5% -2.9%


Organic growth was 0.5% with RIG declining by 1.2%. Pricing increased by 1.7%, reflecting strong cost inflation, notably in distribution. Net divestments and foreign exchange reduced reported sales by 0.9% and 2.5%, respectively. Reported sales in Nestlé Waters decreased by 2.9% to CHF 1.7 billion.

Growth was affected by inclement weather, impacting demand and distribution across Europe and North America. In the United States we launched sparkling water under our leading regional brands. Emerging markets had weaker sales development, particularly in China and Brazil. The international premium brands, S.Pellegrino and Perrier, continued to be the key driver of Nestlé Waters worldwide, posting high single-digit growth.

Other Businesses

  • 4% organic growth: 5.2% RIG; 1.2% pricing.
  • Nespresso continued its good organic growth, with further acceleration in North America.
  • Nestlé Health Science maintained mid single-digit growth, driven by RIG. Pricing was slightly positive.
  • Nestlé Skin Health saw improved growth.


Sales 3M-2018 Sales 3M-2017 RIG Pricing Organic




Foreign exchange Reported growth
Other Businesses CHF 2.7 bn CHF 2.5 bn 5.2% 1.2% 6.4% 2.7% 0.5% 9.6%


Organic growth of 6.4% was driven by strong RIG of 5.2% and pricing of 1.2%.  Net acquisitions increased reported sales by 2.7% and foreign exchange had a positive impact of 0.5%. Reported sales in Other Businesses increased by 9.6% to CHF 2.7 billion.

Nespresso maintained a mid single-digit growth rate. Momentum in Europe decelerated slightly, while growth in North America accelerated further. Nestlé Health Science continued its solid growth, particularly in Medical Nutrition. The Atrium Innovations acquisition was completed and fully consolidated from the beginning of March. Nestlé Skin Health saw improved growth, notably in North America.


We confirm our full-year guidance for 2018. We expect organic sales growth between 2% and 4%, and underlying trading operating margin improvement in line with our 2020 target. Restructuring costs[1] are expected at around CHF 700 million. Underlying earnings per share in constant currency and capital efficiency are expected to increase.




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