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Coffee firm vows to bolster profits

By Burton Mail  |  Posted: April 17, 2014

  • Nestle

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A COFFEE giant which has a factory in South Derbyshire has revealed that it has suffered its worst first-quarter sales growth since 2009.

Nestlé, which has a factory in Hatton, said that unusual weather, a late Easter, poor sales in emerging markets and cost-conscious Europeans contributed to the poor performance.

Despite the lacklustre start, Nestle said it anticipated a good year ahead, thanks to a roll-out of new products.

Chief executive Paul Buckle said: “Our organic growth in the first months of the year was in line with expectations and driven by volume rather than price.

“The continued roll-out of new products, along with good execution, sustained this growth in difficult market conditions.

“We will keep up the pace of innovation, while further strengthening support for our brands.

“We confirm our outlook for the full year: performance weighted to the second half, outperforming the market, with organic growth around five per cent and improvements in margins, underlying earnings per share in constant currencies and capital efficiency.”

Frugal shoppers in the UK had been opting for cheaper brands, with sales in the region falling by 0.8 per cent.

However, there was some good news as Hatton-made Nescafé Dolce Gusto gained more of a market share with strong double-digit growth,

Bosses say these results will not impact its effort to create a ‘substantial’ number of new jobs at its South Derbyshire plant.

The majority of the jobs are to be offered to young people, while paid work experience placements will also be made available, in a deliberate effort to help more school leavers.

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