Nestlé reports coffee growth in half-year results

Nestlé has reported organic growth of 3.6 per cent in its half-year results for 2019. The United States and Brazil led the increase, with real internal growth (RIG) up 2.6 per cent and pricing up one per cent. Total reported sales increased by 3.5 per cent from CHF 43.9 billion (about US$44.2 million) to CHF 45.5 billion (about US$45.8 million). Net acquisitions had a positive impact of 1.1 per cent and foreign exchange reduced sales by 1.2 per cent. “We are encouraged by our first half results and have made further progress toward our 2020 financial goals. Disciplined execution and fast innovation contributed to improved organic growth and profitability,” says Mark Schneider, CEO of Nestlé CEO. “Across our categories, increased investment behind our brands and in innovation is clearly paying off, as reflected in our strong momentum in PetCare and the return to mid-single-digit growth in coffee. Our Starbucks launch has been a great success so far and we plan on further geographic expansion and product innovation to make the most of this unique opportunity.” Nespresso maintained mid-single-digit organic growth, with double-digit growth achieved in North America and emerging markets. Nestlé says Europe posted positive growth, supported by strong demand for the Vertuosystem and Nespresso’s Limited Editions. For the full-year of 2019, Nestlé expects organic sales growth around 3.5 per cent and the underlying trading operating profit margin at or above 17.5 per cent. “Active portfolio management will continue to sharpen our strategic focus and position the company in attractive high-growth businesses. Our value creation model is clearly delivering the expected results and will support sustained profitable growth,” Schneider says. Follow Global Coffee Report on LinkedIn, Facebook, and Twitter for up-to-date news and analysis of the global coffee industry.