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Nestlé reports nine-month sales for 2021, raises full-year organic sales growth guidance
- Organic growth reached 7.6%, with real internal growth (RIG) of 6.0% and pricing of 1.6%. Growth was supported by continued momentum in retail sales, steady recovery of out-of-home channels, increased pricing and market share gains.
- Total reported sales increased by 2.2% to
CHF 63.3 billion (9M-2020:CHF 61.9 billion ). Foreign exchange reduced sales by 2.0%. Net divestitures reduced sales by 3.3%. - Continued progress in portfolio management. On
August 9, 2021 , Nestlé completed the acquisition of the core brands ofThe Bountiful Company . - Full-year guidance for 2021 updated: we expect full-year organic sales growth between 6% and 7%. The underlying trading operating profit margin is expected around 17.5%, reflecting initial time delays between input cost inflation and pricing, as well as the one-off integration costs related to the acquisition of
The Bountiful Company's core brands. Beyond 2021, our mid-term outlook for continued moderate margin improvement remains unchanged. Underlying earnings per share in constant currency and capital efficiency are expected to increase this year.
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."
Zone AMS | Zone EMENA | Zone AOA | Nespresso | Nestlé Health Science | Other Businesses | ||
Sales 9M-2021 (CHF m) | 63 294 | 24 589 | 15 492 | 15 172 | 4 654 | 3 237 | 150 |
Sales 9M-2020 (CHF m)* | 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% |
Pricing | 1.6% | 3.2% | 0.8% | 0.2% | 0.6% | 0.1% | 2.9% |
Organic growth | 7.6% | 8.4% | 7.2% | 4.1% | 11.0% | 14.3% | 28.5% |
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).
Group Sales
Organic growth reached 7.6%, with RIG of 6.0%. Pricing increased to 1.6%, accelerating to 2.1% in the third quarter.
Growth was broad-based across most geographies and categories. Organic growth reached 7.1% in developed markets, based mostly on RIG with positive pricing. Organic growth in emerging markets was 8.3%, with robust RIG and positive pricing.
By product category, the largest contributor to organic growth was coffee, fueled by strong momentum for the three main brands Nescafé, Nespresso and Starbucks. Starbucks products posted 15.5% growth, with sales reaching
By channel, organic growth in retail sales was 6.6%. E-commerce sales grew by 17.2%, reaching 14.1% of total Group sales, with strong momentum in most categories, particularly coffee,
Net divestitures decreased sales by 3.3%, largely related to the Nestlé
Portfolio Management
Nestlé is transforming its global water business, sharpening its focus on international premium and mineral water brands and healthy hydration products. In March, Nestlé completed the acquisition of
Nestlé Health Science continues to focus on building a nutrition and health powerhouse. On
Building on the successful global coffee alliance, Nestlé continues to expand the reach of Starbucks branded coffee and tea products outside Starbucks retail stores. In July, Nestlé and Starbucks announced a new collaboration to bring Starbucks ready-to-drink coffee beverages to select markets across
Zone
- 8.4% organic growth: 5.2% RIG; 3.2% pricing.
North America posted mid single-digit organic growth, with robust RIG and positive pricing.Latin America reported double-digit organic growth, with both strong RIG and pricing.
Sales 9M-2021 | Sales 9M-2020 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Zone AMS | 5.2% | 3.2% | 8.4% | - 6.0% | - 3.9% | - 1.5% |
Organic growth was 8.4%, with strong RIG of 5.2% supported by volume and mix. Pricing increased to 3.2%, accelerating to 5.0% in the third quarter. Net divestitures reduced sales by 6.0%, as the divestment of the Nestlé Waters North America brands more than offset the acquisitions of Freshly and
Zone AMS reported high single-digit organic growth, building on a strong sales development in 2020. Increased pricing, continued innovation, strong momentum in e-commerce and a further recovery of out-of-home channels supported growth. The Zone saw continued broad-based market share gains, led by coffee, pet food and dairy.
Zone
- 7.2% 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 andNorth 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 | 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
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
By product category,
Zone
- 4.1% organic growth: 3.9% RIG; 0.2% pricing.
China posted low single-digit organic growth, based on positive RIG and slightly negative pricing.South-East Asia saw slightly negative organic growth, with negative RIG and pricing.South Asia reported double-digit organic growth, with strong RIG and positive pricing.- Sub-Saharan Africa recorded double-digit organic growth, led by strong RIG with positive pricing.
Japan ,South Korea andOceania saw mid single-digit organic growth. Strong RIG was partially offset by negative pricing.
Sales 9M-2021 | Sales 9M-2020 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Zone AOA | 3.9% | 0.2% | 4.1% | - 4.1% | - 0.7% | - 0.6% |
Organic growth was 4.1%, with RIG of 3.9% and pricing of 0.2%. Net divestitures had a negative impact of 4.1%, largely related to the divestment of the Yinlu peanut milk and canned rice porridge businesses in
Zone AOA reported mid single-digit organic growth in a difficult economic environment with regional lockdowns. In the third quarter, growth turned slightly negative, reflecting a sales decline in Infant Nutrition in
Sub-Saharan Africa recorded double-digit growth, based on strong sales developments for Milo, Maggi and Nescafé led by affordable offerings.
By product category, the key growth drivers were culinary, coffee and Nestlé Professional. Sales in confectionery and ice cream grew at a high single-digit rate, with good sales momentum in
Nespresso
- 11.0% organic growth: 10.4% RIG; 0.6% pricing.
Sales 9M-2021 | Sales 9M-2020 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Nespresso | 10.4% | 0.6% | 11.0% | - 0.1% | 0.4% | 11.3% |
Organic growth reached 11.0%, based on strong RIG of 10.4% and pricing of 0.6%. Foreign exchange positively impacted sales by 0.4%. Reported sales in Nespresso increased by 11.3% to
Nespresso posted double-digit growth, moderating to a mid single-digit rate in the third quarter due to a high base of comparison in 2020. The Vertuo system continued to see strong growth, with the Original system also contributing positively. Increased consumer adoption and innovation supported growth. Nespresso expanded its coffee offerings across the Vertuo system, including Peru Organic, and added Novecento and Millenio to the Italian Heritage range for the Original System. The Nespresso x Chiara Ferragni summer collection and social media campaign resonated strongly with consumers.
By channel, boutiques and out-of-home channels saw a further recovery, with a continued positive sales development in e-commerce.
By geography, the
Overall Nespresso gained market share, with contributions from most markets.
Nestlé Health Science
- 14.3% organic growth: 14.1% RIG; 0.1% pricing.
Sales 9M-2021 | Sales 9M-2020 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Nestlé Health Science | 14.1% | 0.1% | 14.3% | 22.4% | - 2.8% | 33.8% |
Organic growth was 14.3%, with strong RIG of 14.1% and 0.1% pricing. Net acquisitions increased sales by 22.4%, largely related to the acquisitions of the core brands of
Nestlé Health Science posted double-digit organic growth, building on a strong sales development in 2020. Vitamins, minerals and supplements that support health and the immune system continued to see strong demand with broad-based market share gains across channels and markets. Growth was supported by e-commerce momentum, new product launches, geographic expansion and strong execution in the supply chain.
Consumer care posted double-digit growth, with strong contributions from Vital Proteins,
Medical Nutrition reported mid single-digit growth, with robust demand for Compleat, a comprehensive nutritional tube-feeding formula, and pediatric care products, such as Althéra, Alfaré and Alfamino.
By geography, the
Business as a force for good: supporting a just transition to regenerative food systems
Nestlé is a signatory of the UN Business Ambition for 1.5°C pledge and was one of the first companies to share a detailed, time-bound climate plan in
Together with external partners, from farming communities, academia, civil societies and government, Nestlé is piloting trials with more than 50 reference farms globally. The learnings from these trials will be adapted locally and scaled up.
Regeneration is fundamental to creating more resilient food systems. Regenerative farming practices aim to restore soil health, renew water cycles, increase biodiversity, and integrate livestock. These practices can also sequester carbon, which will contribute to achieving Nestlé's ambitious climate targets.
The transition to regenerative food systems will only succeed if it is socially and economically viable for all, which is why Nestlé is putting farmers at the center of its efforts. The company will offer investment support to mitigate initial risks and pay premiums for raw materials produced using regenerative agriculture. This will reward farmers not only for the quantity and quality of ingredients, but also for the environmental benefits.
For technical assistance, Nestlé's vast network of experts and agronomists will deploy state-of-the art science to help farmers adopt regenerative practices. The company will also offer agricultural training and help farmers exchange information and best practices that can be adapted locally.
Nestlé expects to invest
Outlook
Full-year guidance for 2021 updated: we expect full-year organic sales growth between 6% and 7%. The underlying trading operating profit margin is expected around 17.5%, reflecting initial time delays between input cost inflation and pricing, as well as the one-off integration costs related to the acquisition of
Annex
Nine-month sales overview by operating segment
Zone AMS | Zone EMENA | Zone AOA | Nespresso | Nestlé Health Science | Other Businesses | ||
Sales 9M-2021 (CHF m) | 63 294 | 24 589 | 15 492 | 15 172 | 4 654 | 3 237 | 150 |
Sales 9M-2020 (CHF m)* | 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% |
Pricing | 1.6% | 3.2% | 0.8% | 0.2% | 0.6% | 0.1% | 2.9% |
Organic growth | 7.6% | 8.4% | 7.2% | 4.1% | 11.0% | 14.3% | 28.5% |
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% |
Nine-month sales overview by product
Powdered & liquid beverages | Water | Milk products & ice cream | Nutrition & Health Science | Prepared dishes & cooking aids | Confec-tionery | PetCare | ||
Sales 9M-2021 (CHF m) | 63 294 | 17 499 | 3 230 | 7 837 | 9 363 | 8 873 | 5 132 | 11 360 |
Sales 9M-2020 (CHF m) | 61 912 | 16 219 | 5 020 | 8 114 | 9 004 | 8 460 | 4 713 | 10 382 |
Real internal growth (RIG) | 6.0% | 8.6% | 1.9% | 3.2% | 0.1% | 5.9% | 7.9% | 9.9% |
Pricing | 1.6% | 0.7% | 2.4% | 3.2% | 0.6% | 1.6% | 1.5% | 2.3% |
Organic growth | 7.6% | 9.3% | 4.3% | 6.4% | 0.8% | 7.5% | 9.5% | 12.1% |
* 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).
Contacts:
Media:
Christoph Meier Tel.: +41 21 924 2200
mediarelations@nestle.com
Investors:
Luca Borlini Tel.: +41 21 924 3509
ir@nestle.com
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