Nestlé reports $73.1 billion in sales for first nine months of 2012

Nestlé S.A. released its sales figures for the first nine months of 2012 on 18 October, reporting an 11 per cent increase to $73.1 billion.  The figures represent an organic growth of 6.1 per cent, and a real internal growth of 2.9 per cent.  The growth was largely on the back of emerging markets, which saw 11.7 per cent in organic growth, while developed markets saw 2.4 per cent.  Coffee products were reported as performing well across the board, with Nespresso achieving double-digit growth. Nestlé attributed Nespresso's success to a high level of innovation, including three limited edition coffee launches and two new machines, as well as 28 boutique openings.  In North America, the company reported strong performance in both soluble coffee and coffee creamers, with Nescafé Clasico and Coffee-Mate Natural Bliss as highlights. The company said that soluble coffee performed well in Latin America, with the region seeing double-digit growth.  In Europe, both Nescafé soluble coffee and the Nescafé Dulco Gusto system were said to have performed well.  In emerging markets in Asia, Oceania and Africa, Nestlé noted that dairy, powdered beverages and ready-to-drink products, particularly Nescafé, were key growth drivers. Meanwhile in developed market Japan, coffee systems Nescafé Barista and Nescafé Dolce Gusto were helping drive growth. “Nestlé's growth in the first nine months is in line with our expectations,” said Paul Bulcke, Nestlé CEO, in a statement. “It is the result of the capabilities built over time in innovation, distribution and engaging with consumers. We delivered double-digit growth in emerging markets, where we are expanding our routes to market and enhancing our product offerings. We grew in the intensely competitive developed markets in spite of a general economic malaise and low levels of consumer confidence. OUr continued momentum in real internal growth, combined with some easing of input cost pressures, allows us to confirm our full-year outlook.”  Nestlé noted that these results confirm the full year outlook of 5 – 6 per cent organic growth.