Nestlé reports global results for the first nine months and announces 7.8% organic growth

Organic growth reached 7.8%, with pricing of 8.4% and real internal growth (RIG) of -0.6%. Growth was broad-based across geographies and categories. Full-year 2023 outlook confirmed, the company expects organic sales growth between 7% and 8%.

“Our diversified portfolio and differentiated offerings helped us deliver strong organic growth in the first nine months of the year. Growth was driven by pricing as we continued to navigate historic inflation levels. The recovery of our volume and mix is underway.[…] At the same time, Nestlé has further strengthened its nutrition strategy and stepped-up its efforts to guide people towards a balanced diet. Actions include providing clear, front-of-pack portion guidance, transparency on the nutritional value of our products and leading marketing-to-children policies. We also set an ambitious target to grow the sales of our more nutritious products by CHF 20-25 billion by 2030,” commented Mark Schneider, Nestlé CEO.

Organic growth was 8.8%, with pricing of 11.1%. RIG was – 2.3%, following capacity constraints and portfolio optimization actions. Reported sales in Zone Europe increased by 1.3% to CHF 14.1 billion.

Growth in Zone Europe was supported by pricing, strong sales development for e-commerce and continued momentum for out-of-home channels. The Zone saw market share gains in pet food and Infant Nutrition.

By product category, the key contributor to growth was Purina PetCare, driven by differentiated offerings across premium brands Felix, Gourmet and Purina ONE. Coffee saw mid single-digit growth, with particular strengthfor NESCAFÉ. In September, the Zone launched NESCAFÉ Dolce Gusto Neo paper-based pods in France and Switzerland. Confectionery reported high single-digit growth, with continued market share gains for KitKat. Nestlé Professional posted double-digit growth, led by beverages. Infant Nutrition recorded high single-digit growth, based on continued momentum for premium infant formula, particularly NAN . Culinary posted mid single-digit growth, with robust sales developments for Maggi . In the third quarter, the transaction to create a frozen pizza joint venture in Europe was completed.

Financial results for Nestlé Romania

„Nestlé Romania has ended the first nine months of the year with an organic growth of 19%, a growth that came from all 10 categories. We have continued our social involvement through social responsibility projects and donations to the Food Bank, which amounted to 43 tons of food worth 121,723 Euros. During this period, we have maintained our position among the preferences of Romanians, for which we thank all our consumers. The growth in these months is due to the Nestlé Romania team, a team of well-trained professionals, passionate about their work and highly dedicated, as well as a portfolio of superior products, manufactured to the highest quality standards, based on over 150 years of experience,“ says Silvia Sticlea, Country Manager Nestlé Romania.

Business as a force for good: Creating economic opportunities for the world’s youth

Nestlé celebrates the tenth anniversary of Nestlé Needs YOUth this year. The company launched this initiative at a time when youth unemployment in Europe was at a record high. The goal was to help young people all over the continent improve their employability and obtain employment. Since then, the program has scaled to a global scope.

Nestlé helps youth become more employable by offering traineeships and apprenticeships. Last year alone, the company provided nearly 11 500 such opportunities. Nestlé also offers online training, career guidance, mentorships and networking opportunities. Well over one million people took part in digital events in 2022. While many trainees and apprentices take a permanent position with Nestlé, the goal of the program is to equip them with skills that can help them secure a job anywhere.

Employability remains a key pillar of the program today, but Nestlé has also expanded it to include two additional dimensions: agripreneurship and entrepreneurship. Supporting young farmers and entrepreneurs all over the world is in line with the company’s objectives to advance regenerative agriculture and to develop innovative products and services.

With the average age of farmers now well into the 50s in many parts of the world, Nestlé is also striving to make farming more attractive to young people. Encouraging them to pursue a livelihood in farming is an opportunity to embed regenerative agriculture methods, which are key to helping address climate change. Through Nestlé’s AgripreneurshipProgram, young farmers learn how to run their farms as businesses from which they can make a decent living. Nestlé provides them with access to training courses that include regenerative farming topics like agroforestry, soil health and animal welfare. In 2022, more than 5,000 young farmers participated in the program.

The ability to sustainably feed the world’s growing population will be determined not only by today’s young farmers but also by today’s young innovators. Many of them have ideas in line with Nestlé’s priorities – be they related to regenerative agriculture, plant-based products, sustainable packaging solutions, or nutrition. Through Nestlé’s Youth Entrepreneurship Platform, the company empowers young people to learn, develop new skills, test ideas and turn concepts into viable business projects. It connects them to like-minded individuals and provides them with access to experts, equipment and R&D labs.

Nestlé endeavors to scale this important work to have a greater impact. That’s why it founded the Global Alliance for YOUth and brought together 24 other like-minded companies that also provide training and first job opportunities to young people. It has additionally partnered with UNESCO to help young people in Latin America achieve positive social impact in their communities, and it continuously looks for new opportunities to support more of the world’s youth.

More details regarding the results reported by the Group here.

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