Nestlé sales boosted on increased marketing
Nestlé, which owns KitKat and Nespresso, says an increase in marketing spend helped boost sales for the first half of the year.
The global food manufacturer reported a 7.5% increase in underlying sales to 41bn Swiss Franks (£34.8bn), for the six months to June.
During the period Nestlé boosted marketing spend by 6.2% and increased its investment in research and development to drive innovation.
Nestlé CEO Paul Bulcke says the company’s “solid” performance was driven by “leveraging our competitive advantages, investing behind our growth drivers and excelling in operational efficiency and effectiveness.”
He adds: “Nestlé continued to make good progress in a period characterised by political and economic instability, natural disasters, rising raw material prices and, yes, a strong Swiss franc. This has made for an extremely tough, volatile and competitive environment.”
Despite the difficult economic conditions, and “subdued consumer confidence” the company reported growth in both developed markets such as Europe and emerging markets.
Nestlé recently acquired Chinese confectionery firm Hsu Fu Chi to boost its business in the region.
