- Organic growth was 2.0% for the first nine months, with positive real internal growth (RIG).
- RIG was 0.5%, in an environment of softening consumer demand and actions taken in the third quarter to reduce customer inventory.
- Pricing was 1.6%, reducing following unprecedented increases in the prior two years.
- Total reported sales amounted to CHF 67.1 billion (9M-2023: CHF 68.8 billion), down 2.4%. Foreign exchange reduced sales by 4.1% and net divestitures by 0.3%.
- Organizational and Executive Board changes announced to drive performance and transformation (see separate press release).
- Full-year 2024 outlook updated: organic sales growth expected to be around 2%. Underlying trading operating profit margin expected to be around 17.0%. Underlying earnings per share growth in constant currency expected to be broadly flat.
Laurent Freixe, Nestlé CEO, commented: “We delivered organic sales growth, driven by positive real internal growth. Consumer demand has weakened in recent months, and we expect the demand environment to remain soft. Given this outlook and our further actions to reduce customer inventories in the fourth quarter, we have updated our full-year guidance, with organic sales growth expected to be around 2%, in line with the first nine months.
Nestlé is uniquely positioned to win in our industry, given our global scale, broad portfolio of iconic brands and innovative products that connect with people every day and in every stage of their lives. Building on this strong foundation, we will sharpen our focus on consumers and customers and advance our categories to accelerate performance and gain market share. We will also expand our digital transformation to enhance agility and efficiency. For our brands to win in the market, we need to invest. We will generate the resources we need through efficiencies and growth leverage. Disciplined in-market execution will drive Nestlé’s virtuous circle to sustain profitable growth over time, and we have exceptional people to make this happen.
Today’s organizational changes will align Nestlé, bringing simplicity and focus. I look forward to sharing more of our plans at our Capital Markets Day in November.”
| Total Group | Zone North America | Zone Europe | Zone AOA | Zone Latin America | Zone Greater China | Nestlé Health Science | Nespresso | Other Businesses | |
| Sales 9M-2024 (CHF m) | 67 148 | 18 524 | 13 900 | 12 542 | 8 913 | 3 550 | 4 915 | 4 586 | 218 |
| Sales 9M-2023 (CHF m) | 68 829 | 19 027 | 14 144 | 13 223 | 9 139 | 3 624 | 4 850 | 4 617 | 205 |
| Real internal growth (RIG) | 0.5% | -0.9% | 0.8% | 0.8% | -0.7% | 3.9% | 3.0% | 1.3% | 8.6% |
| Pricing | 1.6% | 0.6% | 2.5% | 2.8% | 2.5% | -1.5% | 0.8% | 0.5% | 1.3% |
| Organic growth | 2.0% | -0.3% | 3.3% | 3.6% | 1.9% | 2.5% | 3.8% | 1.8% | 9.8% |
| Net M&A | -0.3% | 0.0% | -2.2% | 0.0% | 0.0% | 0.2% | 0.5% | 0.2% | 0.0% |
| Foreign exchange | -4.1% | - 2.3% | -2.9% | -8.7% | -4.2% | - 4.7% | -3.0% | -2.6% | -3.3% |
| Reported sales growth | -2.4% | -2.6% | -1.8% | -5.2% | -2.3% | -2.0% | 1.3% | -0.7% | 6.6% |
Group sales
Organic growth was 2.0% for the nine months, similar to the 2.1% achieved in the first half. RIG was 0.5%, impacted by soft consumer demand and consumer hesitancy towards global brands, linked to geopolitical tension. Additionally in the third quarter, RIG was negatively impacted by approximately 60 basis points by actions taken to reduce customer inventory, mainly in the Americas. Pricing was 1.6%, continuing to normalize following unprecedented increases in the prior two years. In third quarter, pricing increases in confectionery and coffee linked to higher input costs were partly offset by the impact of promotional activity in PetCare and dairy. By geography, organic growth was driven by emerging markets and Europe, which together more than offset a slight decrease in North America. In developed markets, organic growth was 1.1%, with positive pricing and RIG. In emerging markets, organic growth was 3.5%, led by pricing with positive RIG.
Organic growth by product category:
- Coffee was the largest growth contributor with mid single-digit growth, supported by the three leading coffee brands, Nescafé, Starbucks and Nespresso.
- Purina PetCare delivered low single-digit growth, driven by continued momentum for science-based premium brands Purina ProPlan, Purina ONE and Fancy Feast.
- Sales in confectionery grew at a mid single-digit rate, led by KitKat and key local brands.
- Nestlé Health Science posted low single-digit growth. The recovery plan is on track, with double-digit growth in the third quarter.
- Water delivered mid single-digit growth, underpinned by continued momentum for S.Pellegrino and a recovery in Perrier.
- Infant Nutrition sales grew at a low single-digit rate, supported by continued momentum for NAN, Lactogen and human milk oligosaccharides (HMOs) products.
- Dairy posted negative growth, as a decline in coffee creamers and ambient dairy more than offset growth for affordable milks and dairy culinary solutions.
- Culinary reported negative growth, driven by a decline for frozen food in North America, while growth for Maggi was robust.
By channel, organic growth in retail sales was 1.9%. Organic growth of out-of-home channels was 3.4%. E-commerce sales grew organically by 9.7%, reaching 18.5% of total Group sales.
Net divestitures impacted sales by 0.3%, largely related to the creation in 2023 of a joint venture with PAI Partners for Nestlé’s frozen pizza business in Europe. The impact on sales from foreign exchange was negative at - 4.1%. Total reported sales decreased by 2.4% to CHF 67.1 billion.
Zone Asia, Oceania and Africa (AOA)
- 9M-2024: 3.6% organic growth: 0.8% RIG; 2.8% pricing.
| Sales 9M-2024 | Sales 9M-2023 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
| Zone AOA | CHF 12.5 bn | CHF 13.2 bn | 0.8% | 2.8% | 3.6% | 0.0% | -8.7% | -5.2% |
Organic growth was 3.6%. RIG was 0.8%, reflecting ongoing consumer hesitancy toward global brands, linked to geopolitical tensions. Pricing was 2.8%. Foreign exchange reduced sales by 8.7%. Reported sales decreased by 5.2% to CHF 12.5 billion. By geography, the key growth drivers were Central and West Africa, the Philippines and Thailand. The Zone achieved market share gains in confectionery, with losses in dairy and culinary.
By product category, coffee delivered mid single-digit growth, driven by Nescafé, particularly in ready-to-drink offerings. Culinary delivered high single-digit growth, fueled by strong sales momentum and innovation for Maggi cooking solutions. Sales in Infant Nutrition grew at a mid single-digit rate, with continued momentum for NAN and S-26 as well as the affordable nutrition range Lactogen. Sales for Nestlé Professional grew at a high single-digit rate across most geographies and categories, underpinned by customer acquisition. Confectionery reported low single-digit growth, with continued momentum for KitKat supported by new product launches. Purina PetCare delivered mid single-digit growth, led by Felix and Purina One. Dairy posted slightly positive growth.
Nestlé Health Science
- 9M-2024: 3.8% organic growth: 3.0% RIG; 0.8% pricing.
| Sales 9M-2024 | Sales 9M-2023 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
| Nestlé Health Science | CHF 4.9 bn | CHF 4.9 bn | 3.0% | 0.8% | 3.8% | 0.5% | - 3.0% | 1.3% |
Organic growth was 3.8%, and reached double digits in the third quarter. RIG was 3.0%, accelerating strongly in the third quarter driven by increased product availability. Net acquisitions increased sales by 0.5%. Foreign exchange negatively impacted sales by 3.0%. Reported sales increased by 1.3% to CHF 4.9 billion. By geography, North America delivered low single-digit growth. Europe delivered high single-digit growth, while other regions combined saw positive growth.
Growth in vitamins, minerals and supplements was broadly flat in the first nine months, with double-digit growth in the third quarter. The recovery plan is on-track, and the business has started retaking market share. Active nutrition saw low single-digit growth, with strong sales contribution from Orgain. Medical Nutrition delivered close to double-digit growth, with continued market share gains. Growth was driven by strong sales momentum for adult medical care products, particularly Peptamen, Resource and Vitaflo. Sales for gastrointestinal products continued to grow at a double-digit rate.
Nespresso
- 9M-2024: 1.8% organic growth: 1.3% RIG; 0.5% pricing.
| Sales 9M-2024 | Sales 9M-2023 | RIG | Pricing | Organic growth | Net M&A | Foreign exchange | Reported growth | |
| Nespresso | CHF 4.6 bn | CHF 4.6 bn | 1.3% | 0.5% | 1.8% | 0.2% | -2.6% | -0.7% |
Organic growth was 1.8%. RIG was 1.3%. Pricing was 0.5%. Foreign exchange negatively impacted sales by 2.6%. Reported sales decreased by 0.7% to CHF 4.6 billion. By geography, sales in North America grew at a mid single-digit rate with market share gains. Europe posted slightly negative growth in a market that remains competitive.
Growth was driven by the Vertuo system, with continued broad-based sales momentum. Out-of-home channels continued to generate robust growth, fuelled by the further adoption of the Momento system.
Outlook
Full-year 2024 outlook updated: Given the consumer environment and further actions to reduce customer inventories in the fourth quarter, full-year guidance has been updated. Organic sales growth is now expected to be around 2%, in line with the first nine months. Underlying trading operating profit margin is expected to be at around 17.0%. Underlying earnings per share growth in constant currency is expected to be broadly flat.
Annex
Nine-month sales overview by operating segment
| Total Group | Zone North America | Zone Europe | Zone AOA | Zone Latin America | Zone Greater China | Nestlé Health Science | Nespresso | Other Businesses | |
| Sales 9M-2024 (CHF m) | 67 148 | 18 524 | 13 900 | 12 542 | 8 913 | 3 550 | 4 915 | 4 586 | 218 |
| Sales 9M-2023 (CHF m) | 68 829 | 19 027 | 14 144 | 13 223 | 9 139 | 3 624 | 4 850 | 4 617 | 205 |
| Real internal growth (RIG) | 0.5% | -0.9% | 0.8% | 0.8% | -0.7% | 3.9% | 3.0% | 1.3% | 8.6% |
| Pricing | 1.6% | 0.6% | 2.5% | 2.8% | 2.5% | -1.5% | 0.8% | 0.5% | 1.3% |
| Organic growth | 2.0% | -0.3% | 3.3% | 3.6% | 1.9% | 2.5% | 3.8% | 1.8% | 9.8% |
| Net M&A | -0.3% | 0.0% | -2.2% | 0.0% | 0.0% | 0.2% | 0.5% | 0.2% | 0.0% |
| Foreign exchange | -4.1% | -2.3% | -2.9% | -8.7% | -4.2% | -4.7% | -3.0% | -2.6% | -3.3% |
| Reported sales growth | -2.4% | -2.6% | -1.8% | -5.2% | -2.3% | -2.0% | 1.3% | -0.7% | 6.6% |
Nine-month sales overview by product
| Total Group | Powdered & liquid beverages | Water | Milk products & ice cream | Nutrition & Health Science | Prepared dishes & cooking aids | Confec-tionery | PetCare | |
| Sales 9M-2024 (CHF m) | 67 148 | 17 952 | 2 474 | 7 648 | 11 313 | 7 826 | 5 920 | 14 015 |
| Sales 9M-2023 (CHF m) | 68 829 | 18 257 | 2 606 | 8 100 | 11 470 | 8 649 | 5 735 | 14 012 |
| Real internal growth (RIG) | 0.5% | 1.3% | -0.8% | -0.8% | 0.8% | -2.2% | 0.7% | 1.8% |
| Pricing | 1.6% | 1.7% | 3.7% | 0.1% | 1.3% | 0.5% | 5.1% | 1.2% |
| Organic growth | 2.0% | 3.0% | 3.0% | -0.7% | 2.1% | -1.6% | 5.8% | 3.0% |
For more information, please contact:
Layal Dalal, Nestlé Communications Manager, Middle East and North Africa
Email: [email protected]
About Nestlé in the Middle East and North Africa (MENA)
Nestlé’s heritage in the Middle East and North Africa goes back over 100 years with the sale of the first Infant Cereals in Egypt. Today, Nestlé operates 24 Food & Beverage factories across the 19 countries of the MENA region; and provides direct employment to more than 12,000 people who are all committed to Nestlé’s purpose of unlocking the power of food to enhance quality of life for everyone, today and for generations to come. Nestlé MENA also provides indirect employment across the region to several thousand more.
The Nestlé portfolio in the region currently exceeds 60 innovative product brands in a wide range of categories: Dairy, Infant Nutrition, Coffee and Creamers, Confectionery, Bottled Water, Breakfast Cereals, Culinary products, Health Science, and Pet Care, among others. Nestlé Nido, Nestlé Cerelac, Nestlé NAN, S-26, Progress, Nescafé, Nespresso, Bonjorno Café, Coffee-mate, KitKat, Maggi, Nestlé Fitness, Nestlé Pure Life, Optifast, and Purina Friskies are just some of the brands available in the Middle East and North Africa.
To know more, you can visit the following pages:
Website: www.nestle-mena.com
Facebook: https://www.facebook.com/NestleMiddleeastNorthafrica
Instagram: http://www.instagram.com/nestlemena
LinkedIn: https://www.linkedin.com/company/nestle-s-a-
X: http://www.x.com/NestleMe
