Europe helps drive Nestlé Waters’ sales growth

By Helen Glaberson

- Last updated on GMT

Related tags Nestlé waters

Nestlé Waters saw strong 5.8 per cent organic growth over the first six months of 2011 due partly to double digit sales in certain European markets.

The company’s water segment saw sales of CHF 3.4bn (€3.2bn) over the first half of the year, with a 8.6 per cent rise in trading operating profit margin.

In a conference call, Roddy Child-Villiers head of Investor Relations said pricing had turned positive in the second quarter after a year of reducing brands.

Over all of its segments the firm saw a 13 per cent profit drop, as currency and material costs took their toll.

Nestlé said trading in the first half of the year had been tough, with sales in the six months falling to CHF41bn, from over CHF55bn last year. However the company stuck to forecasts that sales would rise in the full year.

Double-digit growth

French and Belgian markets performed well for Nestle Waters, reporting double-digit sales.

Germany and Eastern Europe also achieved good growth, along with Italy and the UK, reported the firm.

Strong performances were seen by international brands such as S Pellegrino, up 9 per cent and Perrier, which was up 14 per cent.

In addition to S Pellegrino and Perrier, Vittel, Acqua Panna, and Nestlé Pure Life all saw double-digit growth in Asia and Latin America.

Nestlé Waters also saw double-digit growth in Brazil and Mexico, Turkey, Pakistan and Vietnam, amongst others, said the firm.

Particularly challenging

In North America, the environment was particularly challenging, said the company, with increased pricing impacting volume for the regional brands such as Poland Spring and Arrowhead, as well as for Nestlé Pure Life.

“However, the US was a key contributor to the good performance of the international brands,”​ said Nestlé.

Overall trading operating profit was down for the segment, which, the firm put down to a sharp increase in oil-related costs, both distribution and packaging.

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