Nestlé reports record margin

SWITZERLAND – Nestle has said that strong sales in the USA, Canada and Brazil helped to achieve a 12.3% margin increase in 2002.

The group experienced a record margin of 12.3% up on 2001 to CHF10.9 million (€7.5 million). Net profit was up 13.2% to €5.2 million, with a margin of 8.5% compared to 7.9% in 2001.The company saw consolidated sales rise 5.3% on 2001 to €61.1 million for the year.

Key markets the USA, Canada and Brazil saw better growth than in 2001. Countries including Japan, Mexico and Argentina saw sales impacted by a general economic slowdown. In Europe there was accelerated growth in the second half of the year, with France, Nestle’s largest European market, growing at more than twice the level of the previous year.

For the first time, Nestle’s Russian activities achieved sales of over €0.7 billion, and Greater China exceeded €0.9 billion.

The group’s ice cream, chilled dairy, and milk powders products are reported to have improved their profit margin. Chief executive Peter Brabeck said: “Nestle did well in 2002. Achieving record levels in sales, EBITA, net profit, and cash flow in Swiss francs in a period of currency headwinds, economic downturns and political uncertainty shows that we are on the right track.”