Nestle’s 1Q Sales Slow on European Price Pressure

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April 15 (Bloomberg) -- Alain Oberhuber, analyst at Mainfirst Bank, discusses first-quarter results from Nestle and how Russia impacts their business on Bloomberg Television’s “The Pulse.”

Sector, we look at what is happening with nestle and then known -- danone, nestle is not such an important part of the market.

Currently, they have invested a lot in growth, particularly in confectionery and coffee.

Danone has 11% exposure.

Paris is much more concerned about developments in russia at the moment.

We have seen very good numbers in russia.

It seems consumption has picked up heard it used to be a difficult market for fast moving consumer goods, particularly for food and beverage companies.

Nestle benefits from a base effect.

This is quite surprising, many of the statements coming out from nestle saying you're still going strong in russia.


Are we getting a delayed effect gekko is really not going to be affecting economic growth in there for consumption is largely central and eastern europe?

We will see what they say tomorrow in russia.

Nestle has invested a lot, and particular product innovation and coffee give them a very good boost.

Barry meyer, copies only 50% of their business in russia.

Confectionery is 40%. given that eastern russia is different, they feel the same impact as in europe.

Thirdly, you go back to a three years, then you see quite a lot of subdued growth in russia.

Now a new product and they benefit from base effect area there's really no impact from the upheaval we see currently in the ukraine.

You say they have invested a lot of money until now.

To think there will be more investment into russia?

Yes, it is clearly a goal of nestle.

They see that they are gaining traction and market share particularly in coffee.

I expect the growth will continue.

Also, the investment in these regions, absolutely.

Mike student that will be the theme across the board?

What about other companies, those based in germany in particular leaning on a government not wanting any more sanctions because of their exposure to russia?

Will the beholding back the moment?

When i go back to the history of nestle, there've been hit with a lot of problems in latin america, also.

They were always able to gradually benefit from the growth.

I do not expect nestle to slow down its investment.

With the new momentum that we seek and the pipeline the currency has in particular with coffee and confectionery, it should lead to good growth throughout the year in russia.

Just a quick question on the m&a front, what would you be buying if you are running nestle right now?

Would you be going down to the bono strasse?

Would you be maybe picking up new tele--- nutella i would you be shopping in the united states?

80 very good with kids cap.

-- they do very good with kids t kat.

And confectionery, nestle has a lot of headwinds.

In the premium chocolate arena, that could be an issue.

The two companies you mentioned, they could be to potential targets of nestle.

The portfolio recurrence we see

This text has been automatically generated. It may not be 100% accurate.


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