* 2002
Growth, at constant perimeter and exchange rates, reached 9.6%,
above market growth
* EBITA of 696 million Swiss francs
* Seven acquisitions bringing additional sales of 135 million Swiss
francs
* Distribution strengthened in Home & Office Delivery (HOD) in Europe
and in small formats in the U.S.A
1st quarter 2003
* Growth, at constant perimeter and exchange rates, reached 10,9%
* Consolidation of leadership in the HOD channel in Europe via two
key acquisitions
* Numerous innovations marked by the launch of "Eau de Perrier"
2002 results analysis
Nestlé Waters sales grew on a comparable basis by 9.6% in 2002.
Sales at 31st December reached 7.7 billion Swiss francs, an
increase of 4.1% versus 2001. Exchange rates had a negative impact
of 7.5%, while change in the sales perimeter had a positive impact
of 2%.
In absolute terms, Nestlé Waters' EBITA increased by 11.9% versus
2001, reaching 696 million Swiss francs and enabling the company to
achieve a margin of 9%, compared to 8.4% at the end of 2001.
Nestlé Waters' reinforces its world leadership in the bottled water
sector, with a 17% market share in value.
2002 sales by region and brand (at constant perimeter and exchange
rates) were as follows:
+--------------------------------------------------------+
| | % OF SALES | ORGANIC GROWTH (1) |
|--------------------------------------------------------|
| BY REGION |
|--------------------------------------------------------|
| North America | 48 | 13.2 |
|----------------------+------------+--------------------|
| Europe | 45 | 4.7 |
|----------------------+------------+--------------------|
| South America | 2 | 6.3 |
|----------------------+------------+--------------------|
| Asia / Oceania | 3 | 21.7 |
|----------------------+------------+--------------------|
| Africa / Middle East | 2 | 21.5 |
|--------------------------------------------------------|
| BY BRAND |
|--------------------------------------------------------|
| International (5) | 21.8 | 8.0 |
|----------------------+------------+--------------------|
| Nestlé (2) | 2.5 | 68.3 |
|----------------------+------------+--------------------|
| Local (70) | 75.7 | 8.6 |
+--------------------------------------------------------+
[1] Growth as per constant perimeter and exchange rates.
Most regions contributed to overall growth, despite an often
difficult market context:
* Europe: weak growth of the premium brand segment, development
of low-priced brands,
* North America: arrival in force of Cola groups in the bottled
water business,
* South America: highly unfavourable economic situation,
* Asia and Africa / Middle East: high price competition.
In all regions, Nestlé Waters recorded growth rates ahead of market
growth.
In addition, each type of brand (Nestlé, international, local)
contributed positively to Nestlé Waters' performance. Accounting
for just 2.5% of overall sales, Nestlé brands showed the strongest
growth, currently posting sales close to 700 million litres in over
20 countries.
These growth rates demonstrate the performance of Nestlé Waters'
business model. This model, focused on water, makes Nestlé Waters a
global bottled water player, thanks to its worldwide network of
brands present in all distribution channels.
Nestlé Waters' leadership is concentrated in Europe and North
America (regions where economic risk is limited, incomes are high
and growth prospects are robust) through the development of strong
brands, the HOD business, and acquisitions that offer real
opportunities for synergy.
In other regions, Nestlé Waters' development strategy is based on
growth of the Nestlé PURE LIFE brand, a program of targeted
acquisitions, and a strengthening of local positions.
In 2002 this strategy produced some remarkable results:
Nestlé Waters made seven acquisitions - mainly in the HOD sector -
in seven countries, adding 135 million Swiss francs in sales.
By the end of 2002, the brand portfolio totalled 77 brands, thanks
to:
* the addition of new local brands such as Saint Springs in
Russia or Aqua Spring in Greece,
* the emergence of Acqua Panna amongst the international brands,
* three new launches of Nestlé Aquarel in Hungary, Finland and
Switzerland, as well as in HOD in France, Germany and Italy,
* the opening of five new Nestlé PURE LIFE markets (U.S.A.,
Canada, Egypt, Turkey, and Uzbekistan).
2002 also saw its share of innovations, symbolised by the
successful launch of Perrier Fluo in France in the first quarter.
Available in three flavours, Perrier Fluo surpassed sales forecasts
almost immediately, winning many awards from the trade along the
way. Above all, Perrier Fluo enabled the brand to continue to
improve industrial efficiency and performance, following a
successful launch each year.
On the distribution front, Nestlé Waters accelerated expansion in
the European HOD sector. Recording an annual growth of 25-30%, HOD
in Europe has become one of Nestlé Water's pillars of development
since 2000. With its experience and leading position in the U.S.A.
- where HOD accounts for 30% of bottled water sales - Nestlé Waters
has established significant positions in seven European countries
in less than three years, thanks to several acquisitions. At the
end of 2002, these positions give the group a solid base and a
European customer network necessary to take advantage of the
sector's growth potential.
With regard to distribution in the small format sector, Nestlé
Waters posted strong organic growth in the U.S.A. in 2002. Growth
reached 18.1% on a comparable basis, enabling Nestlé Waters to
increase its market share by 4.6%.
Finally, to complement and support this growth, Nestlé Waters
continued to improve operational efficiency, implementing a number
of cost reduction and productivity improvement programs. 2002 also
marks the year of the opening of the first Nestlé water product
technology centre (PTC,Water) in Vittel (France).
1st quarter 2003 sales analysis
2003 has started off at the same rhythm as 2002, despite a
difficult economic and political climate. Nestlé Waters' sales
reached 1.719 billion Swiss francs, an increase of 10.9% at
constant perimeter and exchange rates. This double digit organic
growth conveys the validity of the Nestlé Waters' business model.
The first quarter 2003 equally registers some striking facts in
terms of innovations and acquisitions.
Following in the footsteps of Perrier Fluo, in 2003 Perrier is
maintaining a strong pace of innovation and announces today the
launch in the coming weeks of a new product on the lightly
sparkling water segment in France and in Belgium. Intended to
widen consumption occasions for the brand, this latest innovation
is know as « Eau de Perrier » (see attached press release).
In terms of acquisitions, Nestlé Waters reinforces its HOD
organisation in Europe thanks to the purchase of Powwow and Clear
Water. With Powwow, the European HOD leader and Clear Water, the
leader of the HOD activity in Russia, Nestlé Waters now has a solid
base for development, which with over 550 000 coolers, enables the
company to occupy an undeniable leadership in this new activity in
Europe.
Confident in the Nestlé Waters' business model, CEO Frits van Dijk,
recalls the 2003 objectives, "We will maintain a growth rate higher
than that of the market; improve operating margins; continue to
develop Nestlé brands to make them the top brands in their category
in the following years; and successfully complete the integration
process of the latest HOD acquisitions."
For additional information: www.nestle-waters.com Nestlé Waters media contacts:
Candy MILLER / Henriette MOUREAU
Tel : 00 33 (0)1 41 23 39 74 / 00 33 (0)1 41 23 68 46
email : mailto:candy.miller@waters.nestle.com
/mailto:henriette.moureau@waters.nestle.com
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