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Nestlé reports three-month sales for 2021
- Organic growth reached 7.7%, with real internal growth (RIG) of 6.4% and pricing of 1.2%. Growth was broad-based across most geographies, supported by early signs of recovery from out-of-home channels, improved pricing and market share gains.
- Foreign exchange reduced sales by 5.3% due to the continued appreciation of the Swiss franc against most currencies. Net divestitures had a negative impact of 1.0%. As a result, total reported sales increased by 1.3% to
CHF 21.1 billion (3M-2020:CHF 20.8 billion ). - Portfolio management on track. The sale of Nestlé's regional spring water brands, purified water business and beverage delivery service in the
U.S. andCanada was completed onMarch 31, 2021 . The acquisition ofEssentia Water was completed onMarch 5, 2021 . - Full-year 2021 outlook confirmed: continued increase in organic sales growth towards a mid single-digit rate. Underlying trading operating profit margin with continued moderate improvement. Underlying earnings per share in constant currency and capital efficiency expected to increase.
The development of COVID-19 vaccines has given the world hope and we are supporting the broad and equitable delivery of vaccines in the communities where we operate. Our partnership with the
Zone AMS | Zone EMENA | Zone AOA | Nespresso | Nestlé Health Science | Other Businesses | ||
Sales 3M-2021 (CHF m) | 21 089 | 8 244 | 5 203 | 5 094 | 1 571 | 930 | 47 |
Sales 3M-2020 (CHF m)* | 20 812 | 8 347 | 5 313 | 4 974 | 1 359 | 765 | 54 |
Real internal growth RIG | 6.4% | 4.8% | 3.8% | 8.8% | 16.3% | 9.4% | - 11.1% |
Pricing | 1.2% | 2.4% | 0.6% | 0.3% | 0.8% | 0.1% | 0.3% |
Organic growth | 7.7% | 7.2% | 4.4% | 9.1% | 17.1% | 9.5% | - 10.8% |
Net M&A | - 1.0% | 0.3% | - 3.7% | - 3.4% | - 0.1% | 17.3% | 0.0% |
Foreign exchange | - 5.3% | - 8.6% | - 2.8% | - 3.4% | - 1.4% | - 5.2% | - 2.3% |
Reported sales growth | 1.3% | - 1.2% | - 2.1% | 2.3% | 15.6% | 21.6% | - 13.2% |
* 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 7.7%, with RIG of 6.4%. Pricing increased to 1.2%, reflecting input cost inflation.
Growth was broad-based across most geographies. Organic growth was 5.0% in developed markets, based mostly on RIG. Pricing was positive. Growth in emerging markets was 11.4%, with strong RIG and positive pricing.
Most product categories delivered strong organic growth. Coffee was the largest contributor to growth, fueled by strong demand for Nespresso, Nescafé and Starbucks products. Dairy grew at a double-digit rate, based on elevated demand for home-baking products and fortified milks.
By channel, retail sales posted high single-digit organic growth, reflecting continued strong demand for at-home consumption. Sales declines in out-of-home channels moderated, with a return to positive growth in AOA. E-commerce sales grew by 39.6%, reaching 14.5% of total Group sales. Most categories saw strong momentum, particularly coffee,
Net divestitures decreased sales by 1.0%, largely related to the divestment of the
Portfolio Management
On
On
Zone
- 7.2% organic growth: 4.8% RIG; 2.4% pricing.
North America posted mid single-digit organic growth, with strong RIG and positive pricing.Latin America reached double-digit organic growth, with positive RIG and pricing.
Sales 3M-2021 | Sales 3M-2020 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Zone AMS | 4.8% | 2.4% | 7.2% | 0.3% | - 8.6% | - 1.2% |
Organic growth was 7.2%, with strong RIG of 4.8%. Pricing contributed 2.4%, improving in both
Zone AMS reported high single-digit organic growth, with a high base of comparison in 2020. The Zone saw broad-based market share gains, led by pet food, coffee, dairy and Infant Nutrition.
Zone
- 4.4% organic growth: 3.8% RIG; 0.6% pricing.
Western Europe saw low single-digit organic growth with solid RIG, partially offset by negative pricing.- Central and
Eastern Europe reached high single-digit organic growth, with strong RIG and positive pricing. Middle East andNorth Africa posted mid single-digit organic growth, based on positive RIG and pricing.
Sales 3M-2021 | Sales 3M-2020 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Zone EMENA | 3.8% | 0.6% | 4.4% | - 3.7% | - 2.8% | - 2.1% |
Organic growth reached 4.4%, with strong RIG of 3.8% supported by favorable mix. Pricing turned positive, contributing 0.6%. Net divestitures reduced sales by 3.7%, largely related to the divestment of the
Zone EMENA reported mid single-digit organic growth, with a high base of comparison in 2020. Each region posted positive growth, with strong momentum in
By product category, the key growth drivers were coffee and
Zone
- 9.1% organic growth: 8.8% RIG; 0.3% pricing.
China posted double-digit organic growth, based on strong RIG partially offset by slightly negative pricing.South-East Asia saw low single-digit organic growth, with positive RIG and slightly negative 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 and positive pricing.
Japan ,South Korea andOceania combined saw low single-digit organic growth. Positive RIG was partially offset by slightly negative pricing.
Sales 3M-2021 | Sales 3M-2020 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Zone AOA | 8.8% | 0.3% | 9.1% | - 3.4% | - 3.4% | 2.3% |
Organic growth reached 9.1%, with RIG of 8.8%. Pricing increased to 0.3%. Net divestitures had a negative impact of 3.4%, largely related to the divestment of the Yinlu peanut milk and canned rice porridge businesses in
Zone AOA reported high single-digit organic growth, helped by a low base of comparison in
By product category, sales in culinary, dairy and coffee all grew at double-digit rates. Infant Nutrition posted slightly negative growth, but gained market share in
Nespresso
- 17.1% organic growth: 16.3% RIG; 0.8% pricing.
Sales 3M-2021 | Sales 3M-2020 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Nespresso | 16.3% | 0.8% | 17.1% | - 0.1% | - 1.4% | 15.6% |
Organic growth reached 17.1%, based on strong RIG of 16.3% and pricing of 0.8%. Foreign exchange negatively impacted sales by 1.4%. Reported sales in Nespresso increased by 15.6% to
Nespresso reported double-digit organic growth, reflecting continued expansion of the Vertuo system and strong demand for the Original system. Growth was fueled by continued strong momentum in e-commerce and innovation. New products included the expansion of the World Explorations range, including
By geography, the
In March, Nespresso announced a
Nestlé Health Science
- 9.5% organic growth: 9.4% RIG; 0.1% pricing.
Sales 3M-2021 | Sales 3M-2020 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Nestlé Health Science | 9.4% | 0.1% | 9.5% | 17.3% | - 5.2% | 21.6% |
Organic growth was 9.5%, with strong RIG of 9.4% and pricing of 0.1%. Net acquisitions increased sales by 17.3%, largely related to the acquisitions of Vital Proteins, Zenpep and Aimmune. Foreign exchange negatively impacted sales by 5.2%. Reported sales in Nestlé Health Science increased by 21.6% to
Nestlé Health Science posted high single-digit organic growth, building on a strong first quarter last year. Vitamins, minerals and supplements that support health and the immune system continued to see strong demand. Growth was supported by momentum in e-commerce, new product launches and geographic expansion.
Consumer Care posted double-digit growth, with strong contributions from
By geography, the
Business as a force for good: Supporting equitable COVID-19 vaccination
The development of effective vaccines against COVID-19 has given the world hope. Widespread vaccination is crucial to overcoming the pandemic, and Nestlé advocates for everyone getting vaccinated in line with public health priorities.
There is an urgent need to advance equitable access of vaccines, particularly in low-income countries. That is why Nestlé has entered into a new partnership with the
The partnership includes action at the global level, as well as targeted support in vulnerable countries and regions. Much of the work will focus on the establishment of vaccination sites, the transport of vaccines, information campaigns and promotion of the vaccination of high-risk groups.
Together with other partnerships, Nestlé has committed
The support for equitable access to vaccines is just the latest phase in Nestlé’s response to the COVID-19 crisis. We will continue to engage in the fight against the pandemic and its consequences, protecting people, maintaining global food supply and giving a helping hand in our local communities.
Read more
Outlook
Full-year 2021 outlook confirmed: continued increase in organic sales growth towards a mid single-digit rate. Underlying trading operating profit margin with continued moderate improvement. Underlying earnings per share in constant currency and capital efficiency expected to increase.
Annex
Three-month sales overview by operating segment
Zone AMS | Zone EMENA | Zone AOA | Nespresso | Nestlé Health Science | Other Businesses | ||
Sales 3M-2021 (CHF m) | 21 089 | 8 244 | 5 203 | 5 094 | 1 571 | 930 | 47 |
Sales 3M-2020 (CHF m)* | 20 812 | 8 347 | 5 313 | 4 974 | 1 359 | 765 | 54 |
Real internal growth (RIG) | 6.4% | 4.8% | 3.8% | 8.8% | 16.3% | 9.4% | - 11.1% |
Pricing | 1.2% | 2.4% | 0.6% | 0.3% | 0.8% | 0.1% | 0.3% |
Organic growth | 7.7% | 7.2% | 4.4% | 9.1% | 17.1% | 9.5% | - 10.8% |
Net M&A | - 1.0% | 0.3% | - 3.7% | - 3.4% | - 0.1% | 17.3% | 0.0% |
Foreign exchange | - 5.3% | - 8.6% | - 2.8% | - 3.4% | - 1.4% | - 5.2% | - 2.3% |
Reported sales growth | 1.3% | - 1.2% | - 2.1% | 2.3% | 15.6% | 21.6% | - 13.2% |
Three-month sales overview by product
Powdered & liquid beverages | Water | Milk products & ice cream | Nutrition & Health Science | Prepared dishes & cooking aids | Confec-tionery | PetCare | ||
Sales 3M-2021 (CHF m) | 21 089 | 5 771 | 1 389 | 2 598 | 2 995 | 3 016 | 1 700 | 3 620 |
Sales 3M-2020 (CHF m) | 20 812 | 5 440 | 1 586 | 2 642 | 3 058 | 2 952 | 1 632 | 3 502 |
Real internal growth (RIG) | 6.4% | 9.3% | - 8.1% | 11.6% | - 1.1% | 9.9% | 9.1% | 7.7% |
Pricing | 1.2% | 0.6% | 2.5% | 4.1% | 0.7% | 0.3% | 1.2% | 1.0% |
Organic growth | 7.7% | 9.9% | - 5.6% | 15.7% | - 0.5% | 10.2% | 10.3% | 8.7% |
* 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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