Nestlé Phils. sees good revenues despite spikes in raw materials prices

TAGUM, Davao del Norte — Despite spikes in prices of raw materials, Nestlé Philippines Inc. said Tuesday it expects 2011 revenues to grow 5 percent to 6 percent year-on-year.   The company is banking on consumption growing 2 percent to 3 percent to boost sales of soluble coffee and coffee mixes, according to a company official.   "We're expecting growth, consumption and value-wise,” Christophe Stern, executive vice president for coffee and creamer division, told reporters in a briefing at  Nestlé’s demo coffee farm here.   “I assume we'll do the same in 2012. It will not go down, but it will stabilize," Stern noted.   Nescafe, the company’s premium coffee bank, absorbed higher prices of raw materials and allowed Nestlé to increase its suggested retail price per cup at the bare minimum.   The Philippine climate, which shifts from hot to fairly cool weather, influence the beverage preference of most Filipinos, said David Allen, control director and executive vice president for finance.   "People have started shifting to hot drinks due to cool weather. We are expecting another growth potential in this area," Allen noted.   Nestlé is now in “numbers-crunching mode as its audit season nears… “so, we are still working on our budget and prospects for next year,” he said. We have plans and we expect that 2011 will be a good and stable year for us."   The company expects its Philippine operations to stay in the Top 10 performing companies of Nestlé International.   "The Philippines is one of the best performing countries in the world. The renewed interest in coffee, I believe is being driven by Nestlé. Hopefully, coffee will continue to be loved by more Filipinos," said senior vice president for corporate communications Edith de Leon.   Nestlé accounts for 80 percent of the Philippine market for soluble coffee and coffee mixes and is the biggest buyer of coffee beans from Filipino farmers. — VS, GMA News