Nestlé reports nine-month sales for 2022

Mihai-Alexandru Cristea 19/10/2022 | 10:51

Nestlé, the largest food and beverage company in the world, announces nine-month sales for 2022. The organic growth reached 8.5%, with real internal growth (RIG) was resilient at 1.0% and pricing of 7.5%.

 

Mark Schneider, Nestlé CEO, commented: “We delivered strong organic growth as we continued to adjust prices responsibly to reflect inflation. The challenging economic environment is a concern for many people and is impacting their purchasing power. That’s why we aim to keep products affordable and accessible while considering the interests of all our stakeholders. Our real internal growth remained resilient despite a high base of comparison and continued supply chain constraints, with limited demand elasticity. At the same time, we continue to invest in R&D, marketing and sustainability initiatives, as demonstrated by the recent launch of our Nescafé Plan 2030. We remain confident in the strength of our brands, operational execution and underlying category dynamics which position us well for future growth”.

Zone Europe

Organic growth was 7.1%, with pricing of 5.7%. RIG was resilient at 1.5%, following a high base of comparison in 2021 as well as supply chain constraints. Foreign exchange negatively impacted sales by 7.5%, reflecting the appreciation of the Swiss franc against the Euro. Reported sales in Zone Europe increased by 1.7% to CHF 14.0 billion.

In a difficult economic environment, Zone Europe reported high single-digit organic growth. Pricing, continued momentum of out-of-home channels and innovation supported growth. The Zone saw market share gains in coffee, Infant Nutrition and plant-based food.

By product category, the key growth driver was PURINA PetCare, fueled by premium brands GourmetPURINA ONE and PURINA Pro Plan. Sales in Nestlé Professional grew at a strong double-digit rate, led by beverages. Water posted double-digit growth, with strong contributions from international and local brands. Sales in Infant Nutrition grew at a double-digit rate, based on strong momentum for human milk oligosaccharides (HMOs) products. Confectionery reported mid-single-digit growth, with strong demand for KitKat and seasonal offerings. In the third quarter, our vegan KitKat V was rolled out across 15 European countries. Coffee posted low single-digit growth, led by NESCAFÉ soluble coffee, and continued strong sales developments for Starbucks by Nespresso. Culinary reported a sales decrease, impacted by negative growth in pizza and noodles. Garden Gourmet plant-based products continued to see strong double-digit growth, reflecting new product launches.

Nestlé in Romania

“Nestlé Romania finished the first nine months of the year with an increase of 11.1%, growth supported by a double-digit evolution on 7 of our 10 divisions, including Infant Nutrition, Pet Food, Nespresso, Nestlé Health Science and Coffee. Our expectations are to continue with an equally good overall performance until the end of 2022. Standing in solidarity with the society and its current needs is important to us, and the products donated by Nestlé Romania since the beginning of the year exceed CHF 600,000 and 90 tons of food and beverages. In a period characterized by frequent changes, I am glad to lead a united, strong, ambitious team, which has demonstrated flexibility and adaptability to further develop a business that brings day by day in the homes of Romanians the products so loved by the whole family. Through all the projects we carry out, we reconfirm our commitment to improve the quality of life and contribute to the well-being of society at large”, stated Silvia Sticlea, Country Manager Nestlé România.

In the third quarter, the OptiXpress brand entered Nestlé’s portfolio and launched the Nestlé LITTLE STEPS® 3 range for young children in cardboard packaging designed for recycling and spoon dispensers of at least 95% cane plastic, a renewable resource. On the packaging of JOE Mini, JOE Good Day, JOE Dreams, JOE Original Bar and JOE Noir Bar you can already find the Rainforrest Alliance and Cocoa Plan symbols. Nestlé communicates the message of 100% cocoa from sustainable sources on 34% of the Sweets portfolio.

Full-year 2022 outlook updated

We now expect organic sales growth around 8%. The underlying trading operating profit margin is expected around 17.0%. Underlying earnings per share in constant currency and capital efficiency are expected to increase.

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Mihai-Alexandru Cristea | 29/11/2022 | 10:17

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