Multinational coffee company Nestlé has published its half-year results for 2024 in its latest report.
According to the release, the company’s organic growth has reached 2.1 per cent. This included pricing of 2.0 per cent and real internal growth of 0.1 per cent, an increase from -0.8 per cent last year.
“Positive real internal growth is back. We delivered improved volume and mix growth across the Group in the second quarter,” says Nestlé CEO Mark Schneider.
“Nestlé Health Science is recovering as planned and is set for a strong second half. Looking ahead to the remainder of the year, we will continue to drive RIG by launching innovations that address consumer trends and growing our large iconic brands. At the same time, we have seen pricing come down faster than expected. Therefore, we consider it prudent to adjust our guidance for the year, with organic sales growth now expected to be at least 3 per cent.”
Total reported sales decreased by -2.7 per cent to CHF $45.0 billion. Foreign exchange dropped to -4.4 per cent while net divestitures also decreased by -0.4 per cent.
The company’s underlying trading operating profit margin increased 30 basis points to 17.4 per cent and up to 40 basis points in constant currency. Earnings per share are predicted to increase from 1.8 per cent to CHF 2.16 per cent.
The brand expects organic sales growth of at least 3 per cent. Underlying earnings per share in constant currency is expected to increase at a mid-single-digit rate. Underlying trading operating profit margin guidance is projected to remain unchanged with a moderate increase forecasted.
According to the company, coffee was its largest organic growth contributor with mid-single-digit growth, supported by its three leading global coffee brands Nescafé, Nespresso, and Starbucks.
For more information on the results, click here.
