Nestle profits below expectations as water, nutrition businesses slip
13 Aug 2009
Nestle SA, the maker of Nescafe, KitKat and Maggi, posted net profit of 5.1 billion Swiss francs ($4.7bn) in the first half of 2009, 2 per cent down from its profits of 5.2 billion francs in the same period of 2008.
Food and Beverages' sales reached CHF48.3 billion, with organic growth of 3.4 per cent, compared with organic growth of 8.9 per cent in the first half of 2008.
Nestle's water business, which includes the San Pellegrino and Vittel brands, performed the worst among Nestle's divisions, with sales shrinking 3.7 per cent.
Its nutrition business, which includes the Power Bar and Cerelac brands, also faced difficulties with a 2.4 per cent fall in sales volumes.
However, Nespresso, its premium coffee brand, continued its "outstanding performance" with organic growth over 25 per cent.
Powdered and liquid beverages sales were at CHF9.2 billion, 9.7 per cent organic growth. The strong growth confirms the dynamism of Nestle's billionaire brands Nescafe, Nesquik, Nespresso, Milo and Nestea.
