Strong franc dents Nestl
Thursday 04 May 1995
Sales eased 1.5 per cent to Sfr13bn (£7.1bn) compared with Sf13.2bn for the same period last year. The management blamed the volatility of exchange rates for the decline. A constant rate would have boosted sales about 8.5 per cent.
Sales for the year-end March 1994 also fell, to Sfr 56.89bn from Sfr57.49bn previously. Analysts said results were in line with expectations.
Helmuth Maucher, chief executive officer, said he expected currency fluctuations to impact sales in the coming year by 10-15 per cent.
In an effort to alleviate exchange rate pressure the company pushed up selling prices by as much as 4 per cent in some sectors. Instant coffee turned in the strongest performance despite a 2.7 per cent rise in the price. The US market, which accounts for about half of Nestl's roasted coffee sales, was less impressed and left the coffee on the shelf.
Total US sales dropped 4.4 per cent to Sfr12,216m.
Sales also slipped across Europe with the exception of Switzerland and Italy, where the group's acquisition of ice-cream maker Italgel in 1993 bumped up sales by 15.4 per cent. Switzerland turned in a rise of 0.5 per cent.
The group restated its intention to focus on internal growth, in developing and industrialised markets, although it did not rule out acquisitions.
Expansion into the Far East remains an important part of Nestl's strategy. Two new factories are due to open in China this year to produce condensed milk and ice cream with additional production units being added to manufacture soluble coffee and powdered milk.
Further launches are also planned for Hong Kong, Malasia and the Philippines.
Fracking is turning the US into a bigger oil producer than Saudi Arabia
Missing Malaysia Airlines plane: Details emerge of two young Iranians using stolen passports in search for a better life
Three-quarters of Britons are saying it wrong - the top ten most common mispronunciations
Oscar Pistorius trial: Forensic analyst says athlete 'was not wearing prosthetic legs' when he smashed locked toilet door with a bat
Missing Malaysia Airlines flight MH370: ‘Alright, good night’ – last words from cockpit revealed amid growing confusion
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Exclusive: Impact of immigrants on British workers ‘negligible’
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 1 Boy George: Bad karma
- 2 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 3 First Kiss video: Filmmaker gets 20 strangers to make out on YouTube with awkward results
- 4 Rampaging elephant smashes up house but then 'saves crying baby trapped under debris'
- 5 Ian Wright breaks down in ITV documentary charting his rise to Arsenal and England striker
iJobs Money & Business
£45000 - £55000 per annum + Bonus and Benefits: Harrington Starr: One of the i...
£57000 - £77000 per annum + Benefits: Pro-Recruitment Group: Top 10 Specialist...
£350 - £450 per day: Harrington Starr: Harrington Starr are currently working ...
£40000 - £60000 per annum: Harrington Starr: Application Support - FIX protoco...