Nestle expects organic growth of 5% in 2014
Nestle S.A., Vevey, Switzerland, recently confirmed that its full-year outlook is unchanged, with organic growth around 5% in 2014.
“Our organic growth in the first months of the year was in line with expectations and driven by volume rather than price,” Nestle’s chief executive Paul Bulcke told listeners at an investor conference. “The continued roll-out of new products, along with good execution, sustained this growth in difficult market conditions. We will keep up the pace of innovation, while further strengthening support for our brands. We confirm our outlook for the full year: Performance weighted to the second half, outperforming the market, with organic growth around 5% and improvements in margins, underlying earnings per share in constant currencies and capital efficiency. We expect the continued strengthening of the Swiss Franc to have a negative impact on reported sales.”
In North America, the market remained subdued and the severe weather conditions had an impact across the categories, according to Nestle. With consumer spending low, new product launches drove performance, including DiGiorno Pizzeria, California Pizza Kitchen Thin and Crispy and Lean Cuisine Stuffed Pretzels.
Bulcke also reportedly said that the company is prepared to divest itself of some businesses to rid itself of some underperforming brands.