Nestlé reveals M&A options amid 4.7% sales growth in Q1 2020

  • 24 April 2020
  • Food corporation
Nestlé chief executive Mark Schneider has confirmed 2020 to be a “more vigorous” year for acquisitions

Swiss food giant Nestlé has released its Q1 financial report for 2020, and chief executive Mark Schneider revealed the company is considering the sale of business units to further the growth of the company.

“We did tell you we expect a more vigorous year when it comes to M&A, looking at our pipeline here — that continues to be the case,” Schneider told an analyst, Reuters reported. 

Nestlé completed the divestment of the US ice cream business for $4 billion to Froneri on 31 January. The sale of a 60% stake in the Herta charcuterie business to Casa Tarradellas is expected to close in the first half of 2020.

According to Nestlé’s financial report, the company strategic options include the potential sale of its Yinlu peanut milk and canned rice porridge business in China. 

Nestlé said the company will retain and develop its existing Nescafé ready-to-drink coffee business.

Financials

Nestlé admitted it is too early to assess the full impact of COVID-19, and that the company’s original full-year 2020 guidance remains unchanged for the time being.

The Yes! snack bar maker reported that organic growth reached 4.3% in the first three months of 2020 — real internal growth of 4.7%. Sales in the Americas and EMENA region (Europe, Middle East and North Africa) contributed to the growth whereas the AOA zone (Asia, Oceania, and Asia) saw a sharp sales decline.