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Nestle profits on the Russian market

The Russian subsidiary of Nestle recorded a profit of RUR 801.9 million from its operations in Russia in 2009. In 2008, the company’s net profit stood at only RUR 270.3 million. At the same time, Nestle has reported that its revenue from sales in Russia went down to RUR 53.6 billion, showing a decline of 12.8 percent. The pre-tax profits of the company for 2009 stood at RUR 1.1 billion. In 2008, the company registered a loss of RUR 176.9 million.

The company’s commercial expenditures rose 10 percent to some RUR 10.9 billion. The company’s outlays for the construction of a storage warehouse near Moscow reached RUR 100 million in 2009. Nestle also spent RUR 2 billion for setting up pet food production and packaging operations in the Kaluga region and for building a breakfast production line in the city of Perm.

Nestle is considered to be among the largest food producers with a global presence. It now has 499 production facilities in 83 countries. The company’s overall sales revenue in 2009 went up by 4.1 percent, exceeding 108 billion Swiss francs.

Nestle’s Russian operations consist of 13 plants, including Confectionery Union Russia in Samara, as well as facilities in Barnaul, Perm, Tuchkovo (Moscow region), Zhukovsky, Vologda, Domodedovo, and Kaluga.


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