Nestle echoed the cautious 2012 tone of other global food manufacturers on Thursday after reporting forecast-beating sales growth in the last three months of last year. The world's largest food group which makes brands such as Nescafe, Perrier, Maggi and Carnation warned that it did not expect 2012 to be any easier than previous years due to continued economic uncertainties and volatility.
"It was a challenging year, and we do not expect 2012 to be any easier," Chief Executive Paul Bulcke said in a statement. Underlying sales growth for 2011 was 7.5 percent, beating an consensus forecast for 7.1 percent and rising from 7.3 percent in the first nine months, as it forecast underlying growth returning to its long term range 5-6 percent.
After reporting a 60 basis point increase in margins to 15 percent for 2011, the world's biggest food group also made its standard forecast for "improved margin and underlying earnings per share in constant currencies" for 2012. Nestle shares, which are up barely 1 percent this year, were indicated to rise after the results. The group reported that absolute 2011 sales fell slightly less than expected to 83.6 billion Swiss francs ($90.5 billion), as the rise in the safe-haven currency more than cancelled out underlying growth.
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