Nestle published the data on sales in the first quarter of 2014, which were below the analysts’ expectations. The strong CHF also played a role, but the company assured that the sales will rise later during the year. The sales revenue for Q1 2014 were 20.8 billion CHF (23.6 billion USD), as the analysts forecast were for earnings of 21.456 billion CHF.
The cold weather in USA and later celebrating Easter this year chilled the mood of the consumer purchases, according to experts of Nestle. After the report the company confirmed its forecast for the year sales and profit. According to the analysis the company will perform better in the second half of 2014, as the expectations are for growth of 5%.
“The growth of our core business in the first months of the year was in line with the expectations and was driven by volumes rather than prices. The continuing the presentation of new products with good performance supported this growth amid tough market conditions”, said CEO of Nestle Paul Bulcke. “We expect that the continued appreciation of the franc would have a negative impact on the revenues”.
In the first three months of 2014, the expansion of production slowed to 4.2% from growth of 5.3% recorded in the last quarter of 2013. The figure was slightly above the analysts’ expectations for growth of 4.1%.
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