2020    2019    RIG   Pricing  growth    2020    2019    2020    2019 
         CHF     CHF                               CHF     CHF 
Zone     20.2    21.5                              3.8     3.9 
 EMENA    bn      bn    3.3%   - 0.4%     2.9%      bn      bn   18.6%   18.1% 
 
 
 
 
   Organic growth reached 2.9%, with robust RIG of 3.3% supported by 
favorable mix. Pricing decreased by 0.4%. Divestitures reduced sales by 
2.1%, largely related to the divestment of a 60% stake in the Herta 
charcuterie business. Foreign exchange negatively impacted sales by 
6.6%. Reported sales in Zone EMENA decreased by 5.8% to CHF 20.2 
billion. 
 
   Zone EMENA recorded its best organic growth in the last five years. Each 
region saw broad-based positive growth, with strong momentum in Russia, 
Germany, the United Kingdom and Israel. The Zone continued to see market 
share gains, led by pet food, portioned and soluble coffee, as well as 
vegetarian and plant-based food products. 
 
   By product category, coffee, Purina PetCare and culinary were the 
largest contributors to growth. Coffee was supported by strong demand 
for Nescafé and Starbucks products. Purina PetCare reported 
sustained momentum, supported by premium brands, successful innovation 
and strong demand in e-commerce and specialist channels. Felix, Purina 
Pro Plan, Tails.com and the newly acquired Lily's Kitchen all grew at a 
strong double-digit rate. Culinary saw elevated consumer demand across 
all segments, particularly for Maggi and plant-based products. Garden 
Gourmet reported almost 60% growth, supported by new product launches 
and continued distribution expansion across its 20 markets. Infant 
nutrition posted positive growth, supported by Russia and the Middle 
East. Growth in confectionery was almost flat, as increased demand for 
baking products and tablets was offset by sales declines in impulse and 
gifting products. Water gained market share but recorded negative growth 
due to a sales decrease in the out-of-home channels. Nestlé 
Professional saw a significant sales decline. 
 
   The Zone's underlying trading operating profit margin increased by 50 
basis points. Lower consumer-facing marketing expenses, structural cost 
reductions and portfolio management outweighed COVID-19-related costs. 
 
 
 
   Zone Asia, Oceania and sub-Saharan Africa (AOA) 
 
 
 
 
   -- 0.5% organic growth: flat RIG; 0.5% pricing. 
 
   -- China posted a high single-digit decrease in organic growth, with 
      negative RIG and slightly negative pricing. 
 
   -- South-East Asia saw low single-digit organic growth, with positive RIG 
      and pricing. 
 
   -- South Asia reported mid single-digit organic growth, with positive RIG 
      and pricing. 
 
   -- Sub-Saharan Africa recorded double-digit organic growth, led by strong 
      RIG and positive pricing. 
 
   -- Japan, South Korea and Oceania combined saw almost flat organic growth. 
      Positive RIG was offset by negative pricing. 
 
   -- The underlying trading operating profit margin decreased by 30 basis 
      points to 22.2%. 
 
 
 
 
 
 
 
         Sales   Sales                  Organic  UTOP    UTOP   Margin  Margin 
         2020    2019    RIG   Pricing  growth   2020    2019    2020    2019 
          CHF     CHF                              CHF     CHF 
Zone      20.7    22.1                             4.6     5.0 
 AOA       bn      bn    0.0%     0.5%     0.5%     bn      bn   22.2%   22.5% 
 
 
 
 
   Organic growth was 0.5%, with flat RIG and pricing of 0.5%. Divestitures 
had a negative impact of 0.1%. Foreign exchange reduced sales by 6.7%. 
Reported sales in Zone AOA decreased by 6.3% to CHF 20.7 billion. 
 
   Zone AOA reported positive organic growth. A sales decline in China was 
more than offset by mid single-digit organic growth in the other 
regions. 
 
   China posted negative growth due to the timing of Chinese New Year, 
declines in out-of-home channels and limited consumer stockpiling during 
lockdowns. Coffee posted high single-digit growth, supported by strong 
momentum in e-commerce for Nescafé and Starbucks products. Culinary 
and ice cream delivered mid single-digit growth. Ambient dairy posted 
positive growth, led by home-baking products and nutritional offerings 
for adults. Sales in infant formula declined, with improvement in the 
second half. A positive sales development for NAN was more than offset 
by negative growth for S-26 and illuma. The roll-out of the locally 
produced Belsol brand saw good progress. Infant cereals saw double-digit 
growth. Sales for Purina PetCare grew at a strong double-digit rate, 
supported by Purina Pro Plan and the launch of veterinary products. 
Nestlé Professional reported a sales decrease, with growth 
improving to almost flat in the fourth quarter. 
 
   South-East Asia posted low single-digit growth. Sales in the Philippines 
and Indonesia grew at a high single-digit rate, led by increased 
consumer demand for Bear Brand and Milo. Other South-East Asian markets 
were impacted by sales decreases in the out-of-home channels. South Asia 
continued to perform well, with high single-digit growth in India and a 
return to positive growth in Pakistan. In India, Maggi, Nescafé and 
KitKat posted robust growth and e-commerce sales saw sustained momentum. 
Sales in Sub-Saharan Africa grew at a double-digit rate, reflecting 
strong sales development across most countries and categories. Oceania 
posted robust broad-based growth, led by Purina Pet Care, coffee and 
confectionery. Sales in South Korea grew at a strong double-digit rate, 
driven by coffee. Japan saw a sales decline, with improvement in the 
second half led by coffee. KitKat sales in Japan were negatively 
impacted by a reduction of inbound tourists. 
 
   By product category, the largest growth contributors were dairy, 
culinary and coffee. In coffee, there was continued strong demand for 
Starbucks products. Outside of China, Infant Nutrition saw mid 
single-digit growth, led by South Asia, Sub-Saharan Africa and 
Indonesia. Nestlé Professional posted negative growth, with 
improving sales development in China in the second half. 
 
   The Zone's underlying trading operating profit margin decreased by 30 
basis points. Commodity inflation and COVID-19-related costs outweighed 
lower consumer-facing marketing expenses. 
 
 
 
   Other Businesses 
 
 
 
 
   -- 7.9% organic growth: 7.3% RIG; 0.6% pricing. 
 
   -- Nespresso reported 7.0% organic growth, with strong RIG and positive 
      pricing. 
 
   -- Nestlé Health Science saw 12.2% organic growth, entirely driven by 
      RIG. 
 
   -- The underlying trading operating profit margin of Other Businesses 
      increased by 90 basis points to 19.6%. 
 
 
 
 
 
 
 
             Sales   Sales                  Organic  UTOP  UTOP  Margin  Margin 
             2020    2019    RIG   Pricing  growth   2020  2019   2020    2019 
              CHF     CHF                             CHF   CHF 
Other          9.4    11.2                            1.8   2.1 
 Businesses    bn      bn    7.3%     0.6%     7.9%    bn    bn   19.6%   18.7% 
 
 
 
 
   Organic growth of 7.9% was based on strong RIG of 7.3% and pricing of 
0.6%. Divestitures reduced sales by 17.6%, due to the divestment of 
Nestlé Skin Health. Foreign exchange negatively impacted sales by 
6.3%. Reported sales in Other Businesses decreased by 16.0% to CHF 9.4 
billion. 
 
   Nespresso sales reached CHF 5.9 billion, with organic growth 
accelerating to 7.0%, the highest level in the last six years. 
E-commerce and the Vertuo system saw strong double-digit growth, more 
than offsetting sales declines in out-of-home channels. Growth was also 
supported by innovations such as Reviving Origins, limited-edition 
products and the launch of Nespresso's first organic coffee. By 
geography, the Americas and AOA posted double-digit growth. North 
America continued to see market share gains, with the United States 
becoming Nespresso's largest market. In Europe, a sales decrease in the 
out-of-home channels was partially offset by mid single-digit growth in 
the at-home business. 
 
   Nestlé Health Science sales reached CHF 3.3 billion, with organic 
growth accelerating to 12.2%. Growth was supported by high demand for 
products that support health and immunity. In Consumer Care, Garden of 
Life and Pure Encapsulations were the largest contributors to growth, 
with continued strong momentum in e-commerce. The recently acquired 
Vital Proteins, America's leading collagen products brand, saw strong 
growth. Healthy-aging products posted double-digit growth, reflecting 
successful innovations by Boost in North America and Nutren in Brazil. 
Persona, the subscription-based personalized vitamin business, more than 
tripled its sales. Medical nutrition posted high single-digit growth, 
led by pediatric food allergy and adult medical care products. 
 
   The underlying trading operating profit margin of Other Businesses 
increased by 90 basis points, based on operating leverage and structural 
cost reductions. 
 
   Nespresso and Nestlé Health Science will be reported as stand-alone 
operating segments in Nestlé's published accounts from 2021 
onwards. This change reflects their increased financial contribution and 
provides greater transparency on their performance. 
 
 
 
   Business as a force for good: making milk more climate friendly 
 
 
 
   Agriculture accounts for nearly two-thirds of Nestlé's total 
greenhouse gas emissions, with dairy and livestock making up about half 
of that. Yet milk is an excellent source of nutrients and one of our key 
raw materials. Significantly reducing the carbon footprint of dairy is 
therefore a must. We are working together with our many partners to 
define innovative solutions. In particular, in traditional dairy markets, 
such as New Zealand, the U.S., Switzerland and Ireland, we are seeing 
significant progress. 
 
   If you can't measure it, you can't manage it. It starts with knowing the 
emissions of individual farms. Nestlé uses the Cool Farm Tool

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February 18, 2021 01:15 ET (06:15 GMT)