Nestle posts positive outlook despite challenging confectionery market
Nestlé has projected a positive revenue outlook for 2017, despite challenging conditions experienced within its confectionery division.
According to its latest figures for the first period of the year, overall sales were up year-on-year by 0.4%, to a total of 21 billion Swiss Francs.
Growth for the group remained stable at 2.3%, with declining sales in North America.
The year-on-year first quarter sales for confectionery were 2 billion Swiss Francs, which represented a 2.9% like-for-like fall in growth rates.
Reduced rates of growth contrasted with modest rates of growth in other areas of its business, including its powdered and liquid beverages and nutrition and health science areas of the company.
The company said that it expected overall growth for 2017 to be in the region of between 2% and 4%, with future profitability for the group being driven by further restructuring measures.
Mark Schneider, Nestlé CEO explained that he was encouraged by the overall growth.
He said: "Organic growth of 2.3% this quarter is within our full-year guidance range. The leap year comparison and other seasonal effects made the start of this year particularly challenging.
“We were encouraged by the growth in Asia and the resilience of consumer spending in Europe. Consumer demand in the Americas remained soft. Our pricing improved moderately. We confirm our 2017 guidance and have made good progress with our growth and efficiency projects to position our company for enhanced value creation."
In its UK confectionery operations, the company has confirmed that it is recalling a batch of Kitkat Original Milk Chocolate Bites Pouch Bags. This is because they may have been incorrectly packed with the company’s Kitkat Bites peanut butter, and it has warned customers with allergies to be especially vigilant as a result of this.
The company said that while the products were otherwise safe to consume, it was making the recall as a precaution.