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Nestlé reports three-month sales for 2022
- Organic growth reached 7.6%, with real internal growth (RIG) of 2.4% and pricing of 5.2%. Growth was broad-based across most geographies and categories, with increased pricing, continued momentum in retail sales and a further recovery in out-of-home channels.
- Total reported sales increased by 5.4% to CHF 22.2 billion (3M-2021: CHF 21.1 billion). Foreign exchange decreased sales by 0.8%. Net divestitures had a negative impact of 1.3%.
- Portfolio management on track. In April, Nestlé Health Science completed the acquisition of a majority stake in Orgain, a leader in plant-based nutrition.
- Full-year 2022 outlook confirmed: we expect organic sales growth around 5% and underlying trading operating profit margin between 17.0% and 17.5%. Underlying earnings per share in constant currency and capital efficiency are expected to increase.
Amid this challenging environment, we delivered strong organic sales growth with resilient RIG. We stepped up pricing in a responsible manner and saw sustained consumer demand. Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year. The Nestlé team addressed these headwinds and advanced our long-term strategy and sustainability objectives with agility and determination. We confirm our guidance for the year."
Zone | Zone AOA | Zone | Zone | Nespresso | Nestlé Health Science | Other Businesses | |||
Sales 3M-2022 (CHF m) | 22 238 | 5 800 | 4 633 | 4 633 | 2 697 | 1 361 | 1 602 | 1 449 | 63 |
Sales 3M-2021 (CHF m)* | 21 089 | 5 887 | 4 535 | 4 497 | 2 357 | 1 265 | 1 571 | 930 | 47 |
Real internal growth (RIG)** | 2.4% | 1.4% | 2.8% | 1.7% | 4.7% | 3.8% | 0.2% | 4.3% | 30.7% |
Pricing** | 5.2% | 8.5% | 4.1% | 4.3% | 7.7% | - 0.5% | 3.1% | 1.3% | 3.6% |
Organic growth** | 7.6% | 9.9% | 6.9% | 6.0% | 12.5% | 3.4% | 3.3% | 5.6% | 34.3% |
Net M&A** | - 1.3% | - 13.6% | 0.6% | - 0.1% | 0.1% | 0.0% | 0.6% | 50.1% | 0.0% |
Foreign exchange** | - 0.8% | 2.2% | - 5.4% | - 2.8% | 1.8% | 4.2% | - 2.0% | 0.2% | - 0.6% |
Reported sales growth | 5.4% | - 1.5% | 2.2% | 3.0% | 14.4% | 7.6% | 2.0% | 55.8% | 33.6% |
* 2021 figures restated following the creation of
** RIG, pricing and organic growth figures exclude the
Group sales
Organic growth was 7.6%, with RIG of 2.4%. Pricing increased to 5.2% to reflect significant cost inflation. Organic growth now excludes the
Growth was broad-based across most geographies and categories. Organic growth was 6.7% in developed markets, with increased pricing and resilient RIG following a high base of comparison in 2021. Organic growth in emerging markets was 8.8%, with strong RIG and pricing.
By product category, Purina PetCare was the largest contributor to organic growth led by its science-based and premium brands Purina ONE, Purina Pro Plan and Fancy Feast as well as veterinary products. Coffee saw high single-digit growth fueled by continued demand for Nescafé, Starbucks and Nespresso. Sales in confectionery grew at a double-digit rate, with strong growth for KitKat and gifting products. Water posted double-digit growth, driven by a further recovery of out-of-home channels and premium brands
By channel, organic growth in retail sales was 5.9%. Within retail, e-commerce sales grew by 5.0%, building on very strong growth of 39.6% in the first quarter of 2021. Organic growth in out-of-home channels reached 35.6%, with sales exceeding 2019 levels.
Net divestitures decreased sales by 1.3%, largely related to the Nestlé
Portfolio Management
On
- 9.9% organic growth: 1.4% RIG; 8.5% pricing.
Sales 3M-2022 | Sales 3M-2021 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
1.4% | 8.5% | 9.9% | - 13.6% | 2.2% | - 1.5% |
Organic growth was 9.9%, with RIG of 1.4%. Pricing reached 8.5%. Net divestitures reduced sales by 13.6%, as the divestment of the Nestlé Waters North America brands more than offset the acquisition of
Organic growth in
By product category, Purina PetCare was the largest growth contributor, supported by strong momentum in e-commerce and premium brands, Purina ONE, Purina Pro Plan and Fancy Feast. Nestlé Professional and Starbucks out-of-home products posted double-digit growth. The beverages category reported high single-digit growth, with strong demand for Starbucks at-home products and Coffee mate. Sales in water grew at a double-digit rate, fueled by a recovery for premium brands,
Zone
- 6.9% organic growth: 2.8% RIG; 4.1% pricing.
Sales 3M-2022 | Sales 3M-2021 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Zone | 2.8% | 4.1% | 6.9% | 0.6% | - 5.4% | 2.2% |
* RIG, pricing and organic growth figures exclude the
Organic growth reached 6.9%, with solid RIG of 2.8%. Pricing increased to 4.1%, with an acceleration across most geographies and categories. Foreign exchange negatively impacted sales by 5.4%. Reported sales in Zone Europe increased by 2.2% to
Zone
By product category, the key growth driver was Nestlé Professional, with sales exceeding 2019 levels. Sales in Purina PetCare grew at a double-digit rate, driven by premium brands Purina ONE, Purina Pro Plan and Gourmet as well as veterinary products. Tails.com and
Zone
- 6.0% organic growth: 1.7% RIG; 4.3% pricing.
Sales 3M-2022 | Sales 3M-2021 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Zone AOA | 1.7% | 4.3% | 6.0% | - 0.1% | - 2.8% | 3.0% |
Organic growth reached 6.0%, with RIG of 1.7%. Pricing increased to 4.3%, with broad-based contributions from most geographies and categories. Foreign exchange reduced sales by 2.8%. Reported sales in Zone AOA increased by 3.0% to
Zone AOA reported mid single-digit organic growth, with particular strength in
By product category, culinary was the largest growth contributor, led by Maggi. Coffee posted high single-digit growth, with continued strong demand for Nescafé and Starbucks products. Sales in Nestlé Professional grew at a double-digit rate. Cocoa and malt beverages grew at a high single-digit rate. The recently launched Milo Soy resonated strongly with consumers. Confectionery reported high single-digit growth, with strong demand for KitKat. Growth in Infant Nutrition turned positive, driven by Lactogen. Sales in Purina PetCare grew at a high single-digit rate, led by Purina Pro Plan and Purina ONE.
Zone
- 12.5% organic growth: 4.7% RIG; 7.7% pricing.
Sales 3M-2022 | Sales 3M-2021 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Zone | 4.7% | 7.7% | 12.5% | 0.1% | 1.8% | 14.4% |
Organic growth was 12.5%, with strong RIG of 4.7%. Pricing increased to 7.7%. Foreign exchange had a positive impact of 1.8%. Reported sales in Zone Latin America increased by 14.4% to
Zone
Sales in
By product category, confectionery was the largest growth contributor, in particular KitKat and gifting products. Sales in Purina PetCare grew at a double-digit rate, led by Dog Chow,
Zone
- 3.4% organic growth: 3.8% RIG; -0.5% pricing.
Sales 3M-2022 | Sales 3M-2021 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Zone | 3.8% | - 0.5% | 3.4% | 0.0% | 4.2% | 7.6% |
Organic growth was 3.4%, with RIG of 3.8% and pricing of -0.5%. Foreign exchange had a positive impact of 4.2%. Reported sales in Zone Greater China increased by 7.6% to
Zone
By product category, strong sales developments in most categories were partly offset by a sales decline in Infant Nutrition. Turnaround initiatives in Infant Nutrition continued. Coffee posted double-digit growth, based on strong momentum for Nescafé ready-to-drink and Starbucks products. Sales in culinary grew at double-digit rate, supported by new product launches. Nestlé Professional reported high single-digit growth, despite regional lockdowns. Confectionery posted high single-digit growth, led by strong demand for Shark wafer chocolate and solid growth for
Nespresso
- 3.3% organic growth: 0.2% RIG; 3.1% pricing.
Sales 3M-2022 | Sales 3M-2021 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Nespresso* | 0.2% | 3.1% | 3.3% | 0.6% | - 2.0% | 2.0% |
* RIG, pricing and organic growth figures exclude the
Organic growth was 3.3% based on RIG of 0.2% and increased pricing of 3.1%. Foreign exchange negatively impacted sales by 2.0%. Reported sales in Nespresso increased by 2.0% to
Nespresso reported low single-digit organic growth, following strong double-digit growth in the first quarter of 2021. Out-of-home channels saw continued recovery, with increased adoption for the recently launched Momento system. Growth was fueled by continued momentum for the Vertuo system and innovation. New products included limited editions in the Master Origins range, Aged
By geography,
Nestlé Health Science
- 5.6% organic growth: 4.3% RIG; 1.3% pricing.
Sales 3M-2022 | Sales 3M-2021 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
Nestlé Health Science* | 4.3% | 1.3% | 5.6% | 50.1% | 0.2% | 55.8% |
* RIG, pricing and organic growth figures exclude the
Organic growth was 5.6%, with robust RIG of 4.3% and increased pricing of 1.3%. Net acquisitions increased sales by 50.1%, largely related to the acquisition of the core brands of
Nestlé Health Science posted mid single-digit organic growth with market share gains, building on two consecutive years of double-digit growth. Growth was supported by innovation and geographic expansion.
Consumer Care posted low single-digit growth. Healthy-aging products grew at a double-digit rate, supported by Boost and Nutren. Vitamins, minerals and supplements posted slightly positive growth, following a high base of comparison in early 2021 during the pandemic. Vital Proteins and
Medical Nutrition saw double-digit growth with continued strong sales developments for pediatric products, particularly Althéra, Alfaré and Alfamino. Palforzia, the peanut allergy treatment, saw signs of increased adoption after COVID-related delays.
By geography, sales in
Providing humanitarian relief to the people of
Since the beginning of the war, Nestlé has focused on supporting its employees, their families and the people of
Nestlé is one of the few companies that continues to keep shelves stocked for the population in
Nestlé has been and continues to be in close contact with its 5 800 employees in
Additionally, Nestlé has set up support hubs in neighboring countries, such as
Nestlé employees all over the world are bringing to life the company's long tradition of humanitarian support. They are supporting humanitarian relief efforts through donations to The
Outlook
Full-year 2022 outlook confirmed: we expect organic sales growth around 5% and underlying trading operating profit margin between 17.0% and 17.5%. Underlying earnings per share in constant currency and capital efficiency are expected to increase.
Annex
Three-month sales overview by operating segment
Zone | Zone AOA | Zone | Zone | Nespresso | Nestlé Health Science | Other Businesses | |||
Sales 3M-2022 (CHF m) | 22 238 | 5 800 | 4 633 | 4 633 | 2 697 | 1 361 | 1 602 | 1 449 | 63 |
Sales 3M-2021 (CHF m)* | 21 089 | 5 887 | 4 535 | 4 497 | 2 357 | 1 265 | 1 571 | 930 | 47 |
Real internal growth (RIG)** | 2.4% | 1.4% | 2.8% | 1.7% | 4.7% | 3.8% | 0.2% | 4.3% | 30.7% |
Pricing** | 5.2% | 8.5% | 4.1% | 4.3% | 7.7% | - 0.5% | 3.1% | 1.3% | 3.6% |
Organic growth** | 7.6% | 9.9% | 6.9% | 6.0% | 12.5% | 3.4% | 3.3% | 5.6% | 34.3% |
Net M&A** | - 1.3% | - 13.6% | 0.6% | - 0.1% | 0.1% | 0.0% | 0.6% | 50.1% | 0.0% |
Foreign exchange** | - 0.8% | 2.2% | - 5.4% | - 2.8% | 1.8% | 4.2% | - 2.0% | 0.2% | - 0.6% |
Reported sales growth | 5.4% | - 1.5% | 2.2% | 3.0% | 14.4% | 7.6% | 2.0% | 55.8% | 33.6% |
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-2022 (CHF m) | 22 238 | 6 063 | 790 | 2 709 | 3 596 | 3 098 | 1 873 | 4 109 |
Sales 3M-2021 (CHF m) | 21 089 | 5 771 | 1 389 | 2 598 | 2 995 | 3 016 | 1 700 | 3 620 |
Real internal growth (RIG)** | 2.4% | 2.4% | 14.1% | - 1.4% | 2.5% | - 3.5% | 7.5% | 5.8% |
Pricing** | 5.2% | 4.9% | 7.2% | 5.6% | 2.0% | 6.4% | 3.0% | 7.7% |
Organic growth** | 7.6% | 7.3% | 21.3% | 4.2% | 4.5% | 2.9% | 10.5% | 13.6% |
* 2021 figures restated following the creation of
** RIG, pricing and organic growth figures exclude the
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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