Nestle SA, the world’s biggest food company, raised its 2011 sales estimate after nine month revenue rose better than expected pace. From January to September primary sales rose 7.3% a year ago which helped by higher prices and strong demand in emerging markets. Revenue on an akin basis will “slightly” thump a long-term target of 5 percent to 6 percent this year reported Nestle. Nestle's brands include Nescafe, KitKat and Perrier water le.
“Nestle is finally feeling the pinch of deteriorating consumer sentiment in the U.S.,” said Marco Gulpers, an analyst at ING Financial Markets.
Over first nine months, sales in Europe raised by 3.8% and in America rose by 5.6%. With sales in Asia, Oceania and Africa edging by robust growth of 11.7%, these emerging markets saw double digit growth.
Commodity prices will probably remain high, though price increases may be more “normal” going forward, Chief Executive Officer Paul Bulcke said.
"In a tough environment, we continued to build our capabilities and positions for the future while maintaining strong growth across regions and categories” said CEO Bulcke.