VEVEY, Switzerland,Aug 13, 2015—In the first half of 2015 organic growth was 4.5%, composed of 1.7% real internal growth and 2.8% pricing. Total sales of CHF 42.8 billion were impacted by foreign exchange (-5.8%). Acquisitions, net of divestitures, contributed 1% to sales.
- Growth was broad-based across categories and geographies.
- Organic growth in the developed markets accelerated to 2.2% while in the emerging markets we achieved strong organic growth of 7.3%.
- Organic growth was 6.6% in the Americas (AMS), 3.4% in Europe, Middle East and North Africa (EMENA) and 2.2% in Asia, Oceania and sub-Saharan Africa (AOA). Real internal growth was 1.7% in AMS, 2.4% in EMENA and 0.6% in AOA.
- The continuous efforts to drive cost efficiencies, and the consolidation of Nestlé Skin Health, led to a 160 basis points drop in the cost of goods sold. The effect from input costs was neutral.
- Cost reductions were partly reinvested in increased consumer facing marketing support. The trading operating profit margin rose by 20 basis points in constant currencies. Trading operating profit was CHF 6.4 billion with a margin of 15.0%.
- Net profit was CHF 4.5 billion and reported earnings per share were CHF 1.43. Underlying earnings per share rose 7.3% in constant currencies.
- The group’s operating cash flow was CHF 3.9 billion reflecting the appreciation of the Swiss Franc, lower dividend income from L’Oréal due to our reduced shareholding and the timing of tax payments.
Nestlé Waters
Sales of CHF 3.8 billion, 5.3% organic growth, 5.6% real internal growth; 11.5% trading operating profit margin, +110 basis points
- Nestlé Waters delivered solid broad-based growth across both emerging and developed markets, reflecting rising demand for healthy beverages. The business has a strong presence across the different channels globally. Nestlé Pure Life again delivered double-digit growth, and there was good single-digit growth for our premium international brands, Perrier and S.Pellegrino. The local brands also performed well with Poland Spring in the US, Levissima in Italy, Erikli in Turkey, Al Manhal in Saudi Arabia and Buxton in the United Kingdom all making good contributions.
- The trading operating profit margin was driven mainly by the solid organic growth, rigorous cost management and lower input costs, allowing for increased investment in consumer facing marketing support.
Nespresso continued to grow globally, capitalising on the significant development of the portioned coffee segment. It further expanded its Grands Crus range, opened 20 new boutiques around the world, launched a Nespresso Café in Vienna and continued the roll-out of the Nespresso Cube, an automated retail outlet. Also the VertuoLine system in North America performed well.
