Nestlé has announced its organic growth reached 8.7 per cent in its half-year market report for 2023. This included pricing of 9.5 per cent and real internal growth of -0.8 per cent.
“We pursued our strategic priorities with discipline and focus in a fast-evolving consumer environment,” says Nestlé CEO Mark Schneider. “Based on the strong performance in the first half of the year we upgrade our organic sales growth outlook for 2023.”
Total reported sales increased by 1.6 per cent to CHF US$53.76 billion. Foreign exchange decreased sales by 6.7 per cent, while net acquisitions decreased by 0.4 per cent.
“At-home consumption post-COVID has now normalised, removing a growth drag on some of our categories,” says Schneider. “Out-of-home channels continue to see strong growth momentum.”
Nestlé’s underlying trading operating profit margin was 17.1 per cent, up 20 basis points on a report basis and 30 basis points in constant currency. Underlying earnings per share increased by 11.1 per cent in constant currency, while free cash flow increased by US$2.21 billion to US$3.95 billion.
Nestlé is increasing organic sales growth guidance to a range of 7 to 8 per cent. The underlying trading operating profit margin is expected to be between 17 and 17.5 per cent. Underlying earnings per share in constant currency is expected to increase between 6 and 10 per cent.
“For the remainder of the year, we are confident that we will deliver a positive combination of volume and mix, an improvement in gross margin and a significant increase in marketing investments,” says Schneider.
“Combined with ongoing portfolio management and optimisation as well as the continued implementation of our sustainability initiatives, we are well-positioned to grow and to generate value for our stakeholders.”
More details on the results can be found at Nestlé’s website.