Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Nestle first half profits grow

ZURICH, Aug 11 – Nestle, the world\’s biggest food and beverage group, on Wednesday posted a 7.5 percent increase in first-half net profit as it braced for a more challenging period in the coming months.

Net profit for the first six months of the year reached 5.5 billion Swiss francs (4.0 billion euros, 5.2 billion dollars), the group said in a statement.

Income grew strongest in the Asia, Oceania and Africa region, up 11.7 percent, followed by the Americas at 7.2 percent. Sales in Europe remained stagnant, however.

Overall sales totalled 55.3 billion francs, up 5.7 percent.

"We have increased investment in our brands, people and capabilities and have prepared the company for a more challenging second half," chief executive Paul Bulcke said in a statement.

Nestle maintained its target of organic growth averaging 5.3 percent over the full year, below the accelerating growth rate of 6.3 percent achieved in the first half.

The group said it had taken advantage of a deeper distribution and the roll out of cheaper products in emerging nations, where it posted 10 percent growth in its business.

Sales in Asia, Oceania and Africa grew by 11.7 percent, followed by the Americas (7.2 percent).

Sales in Europe, Nestle\’s second biggest market after the Americas, continued to lag behind the rest of the world, with an increase of 2.5 percent.

Advertisement. Scroll to continue reading.

However, Nestle said sales of bottled water in developed nations had returned to growth after falling consumption over a couple of years under the pressure of environmental concerns in Europe and North America.

Bottled water sales in emerging nations continued to boom with near 20 percent organic growth.

Nestle\’s coffee capsule business, which is set to face growing competition, grew by 25 percent with sales of more than three billion Swiss francs.
 

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...