Nestlé rises Brazil and sales prices are affected

"The Brazil spends a period of political turmoil and the economy was somewhat sacrificed," speaks in cautious Paul Bulcke, Nestlé ''s President. The company has increased prices in Brazil and felt the impact on sales volume in the third quarter. In an interview with Value, its Chairman, Paul Bulcke, is cautious about the business in the country, estimating that the economy was a little "sacrificed" by political turbulence in recent times.
The Brazil was, along with China, one of the countries most cited in the announcement of the results of the third quarter, made by the largest manufacturer of food in the world. Between January global sales in September reached 65.5 billion Swiss francs (US $ 66.1 billion), at a high of 3.3% which represents the weaker result in more than a decade.
In Brazil, the company raised the price of important way in June to compensate for the pressure with the devaluation of the real, and this had an impact in the short term about the volume, said Francois-Xavier Roger, CFO (chief financial officer) of Nestlé. Thus, turnover rose by more than the volume sold, prompting the company to say that the growth model has changed.
Nestle reported that growth in Brazil "is resilient, although affected by the necessary increase in prices, particularly in dairy products and confectionery.
Asked if he considered that the Government of Michel Temer took the proper course, Bulcke replied: "I don''t know. There is still a lot of tension, they are not over. "
He added that "there is inflation, a little recession. It''s a shame, because everyone knows that Brazil now has to pay a price, and that''s what''s going on ".
The Executive follows the debate about how the Government wants to make the country competitive again "and economically viable", and "We hope that we can continue to invest."
Reminded that Nestlé has many factories in the country, new technologies are being adopted, and that the industrial unit of trademark coffee Dolce Gusto, the last opened in the country, maybe you need a new line of production, just as there is possibility of more exports. "I wouldn''t say that the economy is still contracting, and we are not contracting," he added.
For its part, François-Xavier Roger, CFO (chief financial officer), estimates that in September sales came back "to a situation more or less normal in Brazil", but that "there are uncertainties, a lot of volatility from month to month, from one quarter to another."
For Roger, Nestlé can resist, but you need to be cautious because "there''s a lot of economic uncertainty, we cannot forget that Brazil spent his worst crisis of recent times". For Bulcke, Nestlé advantage is having the right people in the Brazilian market, who understand well the local situation.
Good news is the solution for the merger of Nestle and Boy. "Finally it seems that we have come to a result," exclaimed Bulcke, after 14 years of impasse "unfortunate". According to the Executive, Nestlé will sell some brands. "Ok, that''s just the price. This allows us to really go forward. It''s a good sign for the future ".
The Brazil was, along with China, one of the countries most cited in the announcement of the results of the third quarter, made by the largest manufacturer of food in the world. Between January global sales in September reached 65.5 billion Swiss francs (US $ 66.1 billion), at a high of 3.3% which represents the weaker result in more than a decade.
In Brazil, the company raised the price of important way in June to compensate for the pressure with the devaluation of the real, and this had an impact in the short term about the volume, said Francois-Xavier Roger, CFO (chief financial officer) of Nestlé. Thus, turnover rose by more than the volume sold, prompting the company to say that the growth model has changed.
Nestle reported that growth in Brazil "is resilient, although affected by the necessary increase in prices, particularly in dairy products and confectionery.
Asked if he considered that the Government of Michel Temer took the proper course, Bulcke replied: "I don''t know. There is still a lot of tension, they are not over. "
He added that "there is inflation, a little recession. It''s a shame, because everyone knows that Brazil now has to pay a price, and that''s what''s going on ".
The Executive follows the debate about how the Government wants to make the country competitive again "and economically viable", and "We hope that we can continue to invest."
Reminded that Nestlé has many factories in the country, new technologies are being adopted, and that the industrial unit of trademark coffee Dolce Gusto, the last opened in the country, maybe you need a new line of production, just as there is possibility of more exports. "I wouldn''t say that the economy is still contracting, and we are not contracting," he added.
For its part, François-Xavier Roger, CFO (chief financial officer), estimates that in September sales came back "to a situation more or less normal in Brazil", but that "there are uncertainties, a lot of volatility from month to month, from one quarter to another."
For Roger, Nestlé can resist, but you need to be cautious because "there''s a lot of economic uncertainty, we cannot forget that Brazil spent his worst crisis of recent times". For Bulcke, Nestlé advantage is having the right people in the Brazilian market, who understand well the local situation.
Good news is the solution for the merger of Nestle and Boy. "Finally it seems that we have come to a result," exclaimed Bulcke, after 14 years of impasse "unfortunate". According to the Executive, Nestlé will sell some brands. "Ok, that''s just the price. This allows us to really go forward. It''s a good sign for the future ".