Nestlé reports global results for Q1 2023 and announces 9.3% organic growth

Nestlé, the largest food and beverage company in the world, announces the results for Q1 2023, reporting that the total sales increased by 5.6% to CHF 23.5 billion. Foreign exchange decreased sales by 4.0%. Net acquisitions had a positive impact of 0.3%. Organic growth reached 9.3%, with broad-based contributions across geographies and categories. Pricing was 9.8%, reflecting significant cost inflation. Real internal growth (RIG) was -0.5%. Regarding the full-year 2023 outlook, Nestlé expects organic sales growth between 6% and 8%.

Mark Schneider, Nestlé CEO, commented: “Nestlé delivered strong organic growth in the first quarter, as our teams worked diligently to protect volume and ensure resilient mix. Portfolio optimization efforts and responsible pricing helped to offset the ongoing pressures from two years of cost inflation. Following a strong start to the year, we confirm our full-year 2023 outlook and remain focused on creating value for all stakeholders”.

Zone Europe

• 7% organic growth: -1.0% RIG; 10.7% pricing.

Read more about

Nestlé comes to Top Employers with paid internships and more!

read more

Organic growth was 9.7%, with pricing of 10.7%. RIG was -1.0%. Foreign exchange negatively impacted sales by 5.4%, reflecting the appreciation of the Swiss franc against the Euro. Reported sales in Zone Europe increased by 5.4% to CHF 4.9 billion. Growth in Zone Europe was supported by pricing, sustained e-commerce momentum and a strong sales development for out-of-home channels. The Zone saw market share gains in pet food, confectionery and Infant Nutrition.

By product category, the key contributor to growth was Purina PetCare, driven by premium brands Felix, Friskies and Gourmet. A new celebrity campaign for Felix resonated strongly with consumers. Confectionery reported double-digit growth, with strong demand for KitKat and seasonal products. Sales in Nestlé Professional grew at a double-digit rate, supported by branded coffee solutions. Coffee saw high single-digit growth, supported by Nescafé and Starbucks products. Infant Nutrition posted mid single-digit growth, based on continued demand for premium infant formula, particularly NAN. Culinary reported low single-digit growth, with particular strength for Maggi.

„Following a remarkable collective effort coming from our Nestlé Romania team, we are happy to announce a good start of the year, one we are proud of. In the first quarter we saw a 21% organic growth across our 10 Nestlé divisions, 7 of them having a double-digit growth. We continued our social responsibility projects, our educational projects, and our donations towards the Food Bank, where we reached 6.7 tons of Nestle products. We hope to maintain the same pace regarding business development and social responsibility, in order to enjoy together ten consecutive years of growth”, says Silvia Sticlea, Country Manager Nestlé România.

This spring, Nestlé brings its Romanian customers a series of novelties in several market segments: NESCAFÉ 3in1 Creamy Latte, NESCAFÉ Barista Style with 4 flavors – Americano, Cappuccino, Latte and Caramel, KitKat Caramel, JOE® Mini with coconut flavor, pediatric supplements NANCARE®, vegetal milk dessert Gerber® Organic made from coconut milk with apple and pineapple flavors, as well as PURINA ONE BIFENSIS®, which supports the gut health and aids the immune system of cats.

Business as a force for good: Material progress on plastic packaging

Nestlé is reducing plastic usage through less packaging, better packaging and better systems. The company passed peak virgin plastic consumption and peak greenhouse gas emissions in 2019, while the business continued to grow. Global estimates show that over 180 million tonnes of plastics are used for packaging in a year*. In 2022, Nestlé used 0.9 million tonnes of plastics for packaging, representing 0.5% of the plastic packaging globally.

Nestlé strives to use only the minimum amount of plastic packaging necessary to ensure food safety. The company is accelerating the development and scaling of next-generation packaging solutions. These include delivery models like reuse and refill with 20 pilots in 12 countries, recyclable paper, as well as compostable packaging such as coffee pods. It is also continuously reducing packaging by volume and weight.

Nestlé has reduced its use of virgin plastic in packaging by 10.5% since 2018 and is on track to reduce virgin plastic usage by one third by 2025. For example, the company phased out the use of 4.5 billion plastic straws per year and replaced them with paper straws globally. In 2022, the company cut the weight of its total product packaging by 200 000 tonnes while reducing the number of pieces by 14 billion. This reduction in total packaging weight combined with packaging redesign led to greenhouse gas reductions of 280 000 tonnes in 2022.

At year-end 2022, 81.9% of the company’s plastic packaging was designed for recycling. By 2025, Nestlé aims to reach over 95%. Ultimately, it aims for 100% reusable or recyclable packaging and a waste-free future.

The company takes its responsibility to advance the circular economy seriously and is determined to keep effecting change through a collaborative approach. Nestlé is collaborating with supply chain partners, civil society and government stakeholders to act on infrastructure as well as the UN Treaty on Plastics Pollution.