Nestlé reports 2.7% rise in 2013 revenues

Swiss food giant Nestlé has reported a 2.7% rise in revenues to CHF92.2bn for the full-year 2013, affected by negative foreign exchange of 3.7%.

During the year, the company recorded organic growth of 4.6% with real internal growth of 3.1% and 1.5% pricing.

Net earnings totalled CHF10bn, affected by the costs associated with portfolio restructuring and the currency impact.

Trading operating profit was CHF14bn, an increase of 20 basis points compared with last year and 40 basis points in constant currencies.

Nestlé Continuous Excellence reported over CHF1.5bn in efficiencies across the business, which along with reduced structural costs allowed the company to increase brand support and absorb restructuring costs.

The company registered growth in all regions across the world in 2013; 5.1% in the Americas, 0.8% in Europe and 7.4% in Asia, Oceania and Africa.

The Americas regions, with growth in both North America and Latin America, reported sales of CHF28.4bn with trading operating profit margin down by 50 basis points to 18.2%.

Sales in the European region totalled CHF15.6bn, while trading operating profit margin was down by 40 basis points to 15.0%, reflecting the costs of restructuring and increased investments behind the strategic growth platforms.

The Asia, Oceania and Africa region recorded revenues of CHF18.9bn with trading operating profit margin down by 50 basis points to 18.9%.

Nestlé CEO Paul Bulcke said, "The macro-environment in 2013 was one of soft growth, minimal in the developed world and below recent levels in the emerging markets.

"Our response was to increase brand support, accelerate innovation, and to ensure our pricing was sensitive to consumer needs."

The company stated that the 2013 year was challenging, and expects the same environment in the fiscal 2014.

As part of efforts to lead the nutrition, health and wellness segment, the company created Nestlé Health Science, and is now foraying into the specialised medical skin treatments category with a new division, Nestlé Skin Health.

For the fiscal 2014, Nestlé expects growth of around 5% and improvements in margins, underlying earnings per share in constant currencies and capital efficiency.