Nestlé reports nine-month sales for 2022

* RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign exchange lines
Organic growth was 3.0%, with pricing of 4.9%. RIG was - 1.9% following double-digit growth in 2021 during the pandemic. Foreign exchange negatively impacted sales by 2.5%. Reported sales in Nespresso increased by 0.4% to CHF 4.7 billion.
Nespresso reported low single-digit organic growth, following double-digit growth in 2021, with consumption remaining above pre-pandemic levels. The Vertuo system saw further momentum, with broad-based contributions across geographies. During the third quarter, Nespresso launched Vertuo Pop, a new compact machine made with recycled materials, in a number of European markets. Growth was also supported by a further recovery in out-of-home channels, with continued expansion of the Momento system and improved sales development for the office segment.
By geography, North America posted double-digit growth with continued market share gains. Europe reported a sales decrease. Other regions combined recorded high single-digit growth.
 

Nestlé Health Science

* RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign exchange lines
Organic growth was 4.5%, following double-digit growth in both 2020 and 2021 during the pandemic. Pricing was 2.6% and RIG 1.9%. Net acquisitions increased sales by 42.5%, largely related to the acquisition of the core brands of The Bountiful Company and Orgain. Foreign exchange positively impacted sales by 1.6%. Reported sales in Nestlé Health Science increased by 48.6% to CHF 4.8 billion.
Nestlé Health Science posted market share gains. Growth was supported by pricing, innovation and geographic expansion.
Consumer Care reported low single-digit growth. Healthy-aging products grew at a double-digit rate, supported by Boost and Nutren. Growth in vitamins, minerals and supplements was close to flat, following a high base of comparison particularly for immunity-related products during the pandemic. Vital Proteins saw double-digit growth, helped by new product launches and further geographic expansion. Pure Encapsulations, a super-premium offering recommended by healthcare professionals, posted double-digit growth. Sales of Orgain, the recently acquired plant-based nutrition business, grew at a strong double-digit rate. Growth was based on distribution expansion and innovation, particularly for the kids' protein organic nutrition range.
Medical Nutrition reported double-digit growth, with strong sales developments for pediatric and allergy products, Althéra, Alfaré and Alfamino. Zenpep posted high single-digit growth with market share gains. Palforzia, the peanut allergy treatment, saw further patient adoption.
By geography, sales in North America grew at a mid single-digit rate. Europe saw positive growth. Other regions combined posted double-digit growth.

Business as a force for good: Reducing greenhouse gas emissions in coffee farming and improving coffee farmers' livelihoods

Nestlé is on a path to gradually reduce absolute greenhouse gas emissions in its supply chain and to achieve net zero emissions by 2050. For that reason, the company is supporting the transition to a regenerative food system. With the Nescafé Plan 2030, the company is now executing on these ambitions through its largest coffee brand.
The Nescafé Plan 2030 is an integrated strategy that is meant to simultaneously reduce greenhouse gas emissions in coffee farming while boosting the incomes of coffee farmers through the implementation of regenerative agriculture. It builds on Nescafé's decade-long sustainability work. The brand will invest over one billion Swiss francs into the Plan by 2030 – an investment that is supported by Nestlé's regenerative agriculture financing.
Nescafé will work with coffee farmers to make the transition to regenerative agriculture by providing them with training, financial support and high-yielding coffee plantlets. Some of the regenerative practices that will be encouraged include:

• planting cover crops
• optimizing fertilization, including the use of organic fertilizers
• increasing the use of agroforestry and intercropping and
• pruning or replacing existing trees with disease and climate-change resistant varieties.

Nescafé will test, learn and assess the effectiveness of multiple regenerative agriculture practices, prioritizing the seven countries from which it sources 90% of its coffee: Brazil, Vietnam, Mexico, Colombia, Côte d'Ivoire, Indonesia and Honduras. Its goal, in line with the Nestlé Group's ambition for all key agricultural ingredients, is to source 20% of its coffee from regenerative agricultural methods by 2025 and 50% by 2030.
Regenerative farming will improve soil health and fertility. Healthier soil holds more water and captures more carbon from the atmosphere. This will help Nescafé reduce its greenhouse gas emissions by 50% by 2030, in line with the Nestlé Group commitment.
Nescafé will simultaneously help boost the income of farmers who make the transition to regenerative agriculture. It will pilot a financial support program in selected countries to test the best approach according to local conditions. Some of the measures that may be used include: conditional cash incentives for the adoption of regenerative agriculture practices, income protection through weather insurance and greater access to credit lines for farmers.
Nescafé will track the progress and assess the results of its field programs through its Monitoring and Evaluation partnership with the Rainforest Alliance. It is also partnering with Sustainable Food Lab, among others, for topics related to coffee farmers' income assessment, strategy and progress tracking.
With this extensive Plan, Nescafé aims to help make coffee farming globally more sustainable.

Outlook

Full-year 2022 outlook updated: we now expect organic sales growth around 8%. The underlying trading operating profit margin is expected around 17.0%. Underlying earnings per share in constant currency and capital efficiency are expected to increase.

Annex

Nine-month sales overview by operating segment

Nine-month sales overview by product