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Vevey, April 22, 2021
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. and Canada was completed on March 31, 2021. The acquisition of
Essentia Water was completed on March 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
Mark Schneider, Nestlé CEO, commented: ""We are pleased with
Nestlé's strong organic sales growth in the first quarter, building
on broad-based contributions from most geographies and product
categories. Our growth was fueled by disciplined execution, enhanced
digital capabilities and rapid innovation, resulting in further market
share gains. Retail sales saw solid growth and out-of-home channels saw
signs of improvement. We confirm our guidance for the year and our
mid-term outlook for sustained mid single-digit organic growth.
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 International
Federation of the Red Cross and Red Crescent Societies is helping to get
vaccines to those who need them most. In these challenging times, we can
truly demonstrate how business can act as a force for good and help
accelerate the recovery."
Total Zone Zone Zone Health Other
Group AMS EMENA AOA Nespresso Science Businesses
(CHF m) 21 089 8 244 5 203 5 094 1 571 930 47
m)* 20 812 8 347 5 313 4 974 1 359 765 54
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%
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%
exchange - 5.3% - 8.6% - 2.8% - 3.4% - 1.4% - 5.2% - 2.3%
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).
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.
Purina PetCare saw high single-digit growth, led by its science-based
and premium brands Purina Pro Plan, Purina ONE and Felix. Prepared
dishes and cooking aids posted broad-based double-digit growth, with
robust momentum across most brands. Vegetarian and plant-based food
offerings continued to see strong double-digit growth, led by Garden
Gourmet. Confectionery grew at a double-digit rate, supported by
improved growth in impulse and gifting products as well as sustained
momentum in home-baking products. Nestlé Health Science reported
high single-digit growth, reflecting increased demand for vitamins,
minerals and supplements and healthy-aging products. Infant Nutrition
saw a sales decrease. A return to positive growth in China was more than
offset by sales declines in other markets, due to consumer stockpiling
in March last year and lower birth rates in the context of the pandemic.
Water recorded negative growth due to its high exposure to out-of-home
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,
Purina PetCare and culinary.
Net divestitures decreased sales by 1.0%, largely related to the
divestment of the Herta charcuterie business and the Yinlu peanut milk
and canned rice porridge businesses. Foreign exchange reduced sales by
5.3%, reflecting the appreciation of the Swiss franc versus most
currencies, particularly in emerging markets. Total reported sales
increased by 1.3% to CHF 21.1 billion.
On March 5, 2021, Nestlé completed the acquisition of Essentia
Water, a premium functional water brand in the U.S.
On March 31, 2021, Nestlé completed the sale of its regional spring
water brands, purified water business and beverage delivery service in
the U.S. and Canada to One Rock Capital Partners, in partnership with
Metropoulos & Co. for USD 4.3 billion.
Zone Americas (AMS)
-- 7.2% organic growth: 4.8% RIG; 2.4% pricing.
-- North America posted mid single-digit organic growth, with strong RIG and
-- Latin America reached double-digit organic growth, with positive RIG and
Sales Sales Organic Net Foreign Reported
3M-2021 3M-2020 RIG Pricing growth M&A exchange growth
Zone CHF 8.2 CHF 8.3
AMS bn bn 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 North and Latin America. Net acquisitions
increased sales by 0.3%. The acquisitions of Freshly and Essentia Water
more than offset the divestiture of the U.S. ice cream business. Foreign
exchange had a negative impact of 8.6%, reflecting broad-based currency
depreciations against the Swiss franc, particularly in Latin America.
Reported sales in Zone AMS decreased by 1.2% to CHF 8.2 billion.
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.
North America recorded mid single-digit growth, with strong RIG in most
product categories and positive pricing. Frozen and chilled food was the
largest growth contributor, supported by Stouffer's, Lean Cuisine and
the recently launched Life Cuisine. The newly acquired Freshly business
posted strong growth, helped by expanded distribution. The beverages
category grew at a double-digit rate, with strong demand for Starbucks
at-home products, Coffee mate and Nescafé. Purina PetCare delivered
mid single-digit growth, with strong momentum in e-commerce and premium
brands Purina Pro Plan, Purina ONE and Fancy Feast. Merrick recorded
strong growth, supported by new product launches in Healthy Grains.
Home-baking products, including Toll House and Carnation, saw positive
growth. Sales of ice cream and confectionery in Canada grew at a
double-digit rate, driven by Häagen-Dazs and KitKat. Water and
Nestlé Professional reported negative growth, with sales declines
Latin America reached double-digit growth, with both strong RIG and
pricing across geographies and most product categories. Sales in Brazil
grew at a double-digit rate, with strong growth in confectionery, dairy
and coffee. Mexico also reported broad-based double-digit growth,
reflecting high demand for Nescafé and home-baking brands, La
Lechera and Abuelita. Sales in Chile grew at a double-digit rate, led by
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