Nestlé pulls out of red in Czech
loss in 2002 which was caused by a summer of heavy flooding that
led to extensive damage to the company's operations.
The Prague based food company, part of Swiss giant Nestle, said that its net profit for 2003 had been Kc259 million (€8.23m), compared to Kc118 million loss in 2002, a Nestle Cesko spokesman confirmed.
The results came off the back of a small increase in sales, which were up to Kc8.7 billion from Kc8.2 billion in 2002. Of this figure approximately 60 per cent of sales were accounted for domestically, the rest was exported to neighbouring countries.
In 2002 Nestle Cesko was hit by flood damage to some of its own operations. On top of that the company said that its sales were also impacted by the impact of the flood, as many consumers only bared the elements to buy just the essential during the height of the natural catastrophe.
The company also set aside significant costs for restructuring in 2002 and 2003, provisions which it says have also hit results. Nestle Cesko chief Bruno Le Cicle said that the restructuring was finished by the end of 2003 and that this year's results were expected to have a significant benefit.
Meanwhile neighbouring Nestle Slovensko has announced net profit of Sk230 million in 2003, a figure that the company says almost doubled compared to 2002's results. This increase came off the back of a marginal sales increase, up 2.6 per cent to Sk 4.53 billion.
Nestle Cesko's Slovak sister Nestle Slovensko made net profit of Sk230 million in 2003, up by almost a half. Its sales went up 2.6 per cent to Sk4.53 billion.
Nestle entered the former Czech and Slovakian market in early 1992, just at the time that the two states seceded from the former Czecholsovakia.
