Nestlé, the largest food and beverage company in the world, announces the group-wide financial results for the first 9 months of 2021, reporting an organic growth of 7.6%, with a real internal growth (RIG) of 6 % and pricing of 1.6%. The financial results were based on the evolution of retail sales, being supported by the constant recovery in the out-of-home channel, improved pricing and growing market shares.
Mark Schneider, Nestlé CEO, commented: “We are pleased with Nestlé’s strong organic growth in the nine months, driven by broad-based contributions from most geographies and categories. The relentless focus of our teams on local execution and agility enabled us to navigate input cost inflation and supply chain constraints. Investments in innovation, digitalization and sustainability further supported growth by enhancing the relevance and differentiation of our offerings. Nestlé continues to take actions on sustainability. We recently laid out our plans to support a just transition to regenerative food systems, which will help achieve our climate targets as we work closely with farming communities around the world to improve soil health, restore water cycles and increase biodiversity for the long-term.”
|Total Group||Zone AMS||Zone EMENA||Zone AOA||Nespresso||Nestlé Health Science||Other Businesses|
|Sales 9M-2021 (CHFm)||63 294||24 589||15 492||15 172||4 654||3 237||150|
|Sales 9M-2020 (CHFm)*||61 912||24 991||14 952||15 251||4 180||2 421||117|
|Real internal growth RIG||6.0%||5.2%||6.4%||3.9%||10.4%||14.1%||25.5%|
|Net M&A||– 3.3%||– 6.0%||– 2.8%||– 4.1%||– 0.1%||22.4%||0.0%|
|Foreign exchange||– 2.0%||– 3.9%||– 0.7%||– 0.7%||0.4%||– 2.8%||– 2.4%|
|Reported sales growth||2.2%||– 1.5%||3.6%||– 0.6%||11.3%||33.8%||26.0%|
* 2020 figures restated following the disclosure of Nestlé Health Science and Nespresso as standalone segments from 2021 onwards (previously combined and presented in Other Businesses).
Zone Europe, Middle-East and North Africa (EMENA)
- 2% organic growth: 6.4% RIG; 0.8% pricing.
- Western Europe saw mid single-digit organic growth with strong RIG and slightly negative pricing.
- Central and Eastern Europe posted double-digit organic growth, with strong RIG and positive pricing.
- Middle East and North Africa reported high single-digit organic growth, with a balanced contribution from RIG and pricing.
|Sales 9M-2021||Sales 9M-2020||RIG||Pricing||Organic growth||Net M&A||Foreign exchange||Reported growth|
|Zone EMENA||CHF15.5 bn||CHF15.0 bn||6.4%||0.8%||7.2%||– 2.8%||– 0.7%||3.6%|
Organic growth reached 7.2%, with strong RIG of 6.4% supported by volume and mix. Pricing increased by 0.8%, turning positive in Western Europe in the third quarter. Net divestitures reduced sales by 2.8%, largely related to the divestiture of the Herta charcuterie business. Foreign exchange negatively impacted sales by 0.7%. Reported sales in Zone EMENA increased by 3.6% to CHF 15.5 billion.
Zone EMENA reported high single-digit organic growth, based on product innovation and continued strong momentum in e-commerce and specialist channels. All markets posted positive growth, with strong sales developments led by Russia, Turkey, the United Kingdom and Italy. The Zone continued to see broad-based market share gains, particularly for pet food, coffee and plant-based products.
By product category, Purina PetCare posted double-digit growth driven by premium brands Felix, Gourmet and Purina Pro Plan, as well as veterinary products. Sales in coffee grew by almost 10%, supported by strong momentum for Nescafé and Starbucks at-home products with continued innovation across all coffee brands. Nestlé Professional reported strong double-digit growth, helped by further recovery in out-of-home channels.
Financial Results and main categories driving the momentum in case of Nestle in Romania are in line with EMENA figures.