This plan expands on the company's ongoing work to certify all Nestlé Waters' sites according to the Alliance for Water Stewardship (AWS) by 2025. This standard involves understanding local water challenges and engaging with local stakeholders, providing Nestlé with much of the groundwork to design these new projects.

Outlook

Full-year 2021 outlook updated: we expect full-year organic sales growth between 5% and 6%. The underlying trading operating profit margin is now 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.

Annex

Half-year sales and underlying trading operating profit (UTOP) overview by operating segment 


 
                                                        Nestlé 
             Total    Zone    Zone    Zone                Health       Other 
             Group    AMS    EMENA    AOA    Nespresso    Science    Businesses 
Sales 
 6M-2021 
 (CHF m)     41 755  16 162  10 214  10 210      3 158        1 914          97 
Sales 
 6M-2020 
 (CHF m)*    41 152  16 674  10 029  10 062      2 762        1 540          85 
Real 
 internal 
 growth 
 (RIG)         6.8%    5.3%    6.7%    6.3%      13.8%        13.6%       18.4% 
Pricing        1.3%    2.3%    0.6%    0.5%       0.8%         0.0%      - 0.4% 
Organic 
 growth        8.1%    7.6%    7.3%    6.8%      14.6%        13.6%       18.0% 
Net M&A      - 3.1%  - 4.3%  - 4.1%  - 3.7%     - 0.2%        15.1%        0.0% 
Foreign 
 exchange    - 3.5%  - 6.3%  - 1.4%  - 1.7%     - 0.1%       - 4.4%      - 3.0% 
Reported 
 sales 
 growth        1.5%  - 3.1%    1.8%    1.5%      14.3%        24.3%       15.0% 
6M-2021 
 Underlying 
 TOP (CHF 
 m)           7 251   3 112   1 918   2 282        822          258           7 
6M-2020 
 Underlying 
 TOP (CHF 
 m)*          7 156   3 150   1 840   2 282        714          297        - 24 
6M-2021 
 Underlying 
 TOP 
 Margin       17.4%   19.3%   18.8%   22.3%      26.0%        13.5%        7.6% 
6M-2020 
 Underlying 
 TOP 
 Margin*      17.4%   18.9%   18.3%   22.7%      25.9%        19.3%     - 28.6%

Half-year sales and underlying trading operating profit (UTOP) overview by product 


 
                                         Milk               Prepared 
                     Powdered          products  Nutrition  dishes & 
             Total   & liquid           & ice    & Health   cooking 
             Group   beverages  Water   cream     Science     aids    Confec-tionery  PetCare 
Sales 
 6M-2021 
 (CHF m)     41 755     11 648  2 291     5 205      6 060     5 919           3 229    7 403 
Sales 
 6M-2020 
 (CHF m)*    41 152     10 740  3 229     5 392      6 010     5 827           2 973    6 981 
Real 
 internal 
 growth 
 (RIG)         6.8%      10.3%   2.0%      4.8%     - 0.1%      7.1%            9.1%     9.5% 
Pricing        1.3%       0.7%   1.6%      3.5%       1.1%      0.9%            1.9%     0.8% 
Organic 
 growth        8.1%      11.0%   3.6%      8.2%       1.0%      8.0%           11.0%    10.3% 
6M-2021 
 Underlying 
 TOP (CHF 
 m)           7 251      2 905    204     1 309      1 079       962             372    1 568 
6M-2020 
 Underlying 
 TOP (CHF 
 m)*          7 156      2 467    272     1 231      1 401     1 071             280    1 537 
6M-2021 
 Underlying 
 TOP 
 Margin       17.4%      24.9%   8.9%     25.2%      17.8%     16.3%           11.5%    21.2% 
6M-2020 
 Underlying 
 TOP 
 Margin*      17.4%      23.0%   8.4%     22.8%      23.3%     18.4%            9.4%    22.0%

(*) 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).

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com https://www.globenewswire.com/Tracker?data=WHMF38d6E_S1pkvqxKVD2wfz9FeCYAdviJ-s-cxsmWSNPTm4UNZ4BzB5S9BZnBbFsabeHSytYrJ5nR8BKVypEGf-OVAgfCSpLByxw8OC_jX5Sg2enqRnZyygeFxZD_1d

Investors:

Luca Borlini Tel.: +41 21 924 3509

ir@nestle.com https://www.globenewswire.com/Tracker?data=vl4kdcPCjjpil6ydZ4YYUXyF-Lk9xHEzM2NrWFRR8_8iYXdguwaNooppEOHMyhwYwFuR3YpHlDbqLtiQzGrlfg==

(END) Dow Jones Newswires

July 29, 2021 01:15 ET (05:15 GMT)