Nestlé’s revenue in the first quarter of this year increased by 1.4 percent to 21.3 billion Swiss francs, despite a dispute with leading European supermarket chains.
Global revenues rose thanks to a 4.7 percent jump in Asia compared to the previous year, driven by a strong sales season during the Chinese New Year celebrations.
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Nestlé’s business in the United States also achieved higher revenues due to improved sales of pet products.
In Europe, Nestlé is facing price declines as well as a reckoning with leading European supermarket chains, notes Dpa.
The largest European grocery chains – Germany’s Edeka, France’s Intermarche, Spain’s Eroski, Italy’s Conard, Belgium’s Colruyt, and Switzerland’s Coop – have joined forces to increase pressure on Nestlé to offer better terms.
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They even removed Nestlé products from their shelves to emphasize their intention to persist in achieving this goal. These chains are members of the purchasing group Agecore, responsible for 2.6 percent of Nestlé’s total revenue. Nestlé does not disclose profit data in quarterly reports, but usually includes them in semi-annual and annual business reports.
