Daily Management Review

Nestle sells Italian frozen food business


05/04/2017


One of the leaders in the European frozen food market, German company Frosta, is buying Nestle’s Italian business for the production of frozen food.



Ricardo Stuckert/PR
Ricardo Stuckert/PR
The business includes such brands as La Valle degli Orti, Mare Fresco and Surgela. The cost of the deal has not yet been disclosed. The agreement is scheduled to close on June 1.

Nestle, which wide range of products includes Gerber baby food and Perrier bottled water, said last October that it would get rid of inefficient enterprises. After that, the company announced sale of such brands as PowerBar, Musashi, the American business of frozen macaroni Brynwood Partners, as well as the main share of Jennie Craig. In addition, Nestle sold a 10% stake in the manufacturer of aromatic flavors Givaudan in December last year.

Nestle, one of the world's largest food producers, increased its organic revenues by 2.3% in January-March 2017, thanks to a 1.3% increase in sales and 1% in prices.

Given the negative impact of exchange rate differences and sale of assets, Nestle's turnover in January-March increased by 0.4%, to 21 billion Swiss francs from 20.9% a year earlier.

Organic revenue growth in developed markets was 0.8%, in developing countries - 4.3%.

In the countries of North Africa, the Middle East and Europe, the turnover of Nestle fell by 6.9%, to 4 billion Swiss francs, due to the adverse effect of exchange rates and the transfer of the ice cream business in Froneri, a JV with R & R.

The company’s organic revenue in these markets grew by 1.7% due to higher sales. Nestle noted strong business performance in the production of pet food.

In North and Latin America, organic revenue of Nestle grew by 0.4% against the backdrop of a 1.4% decrease in sales, offset by higher prices. The turnover in the region amounted to 6.4 billion Swiss francs.

Organic revenue growth in Asia, Oceania and sub-Saharan Africa was 4.5% (turnover - 4 billion Swiss francs).

Nestle owns 418 factories in 86 countries. The company's portfolio includes more than 2 thousand brands, among which are Nestle, Nescafe, KitKat, Gerber, Maggi.

source: reuters.com






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