Nestlé has reported an organic growth increase of 7.8 per cent with pricing of 8.4 per cent in its nine-month sales report for 2023.
“Our diversified portfolio and differentiated offerings helped us deliver strong organic growth in the first nine months of the year,” says Nestlé CEO Mark Schneider. “Growth was driven by pricing as we continued to navigate historic inflation levels.”
Real internal growth was measured at a decrease of 0.6 per cent. Growth was broad-based across geographies and categories.
“We are seeing the benefits of our portfolio optimisation initiatives and increasing marketing investments behind our billionaire brands,” says Schneider.
Total reported sales decreased by 0.4 per cent to US$77.18 billion compared to the same time period in 2022.
Foreign exchange decreased sales by 7.4 per cent, while net acquisitions had a negative impact of 0.8 per cent.
Organic growth for Nespresso was reported at 5.2 per cent with pricing of 3.5 per cent. Reported sales decreased by 1.2 per cent to US$5.16 billion.
The company expects organic sales growth between 7 and 8 per cent and underlying trading operating profit margin between 17 and 17.5 per cent.
According to Nestlé, underlying earnings per share in constant currency is expected to increase between 6 and 10 per cent.
“Nestlé has further strengthened its nutrition strategy and stepped-up its efforts to guide people towards a balanced diet. Actions include providing clear, front-of pack portion guidance, transparency on the nutritional value of our products and leading marketing-to-children policies,” says Schneider.
“We also set an ambitious target to grow the sales of our more nutritious products by US$22 to 28 billion by 2030.”
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