TIDM76TQ
RNS Number : 2768W
Nestle SA
22 April 2021
Nestlé Press Release
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.......................................
Vevey, April 22, 2021
Nestlé reports three-month sales for 2021
-- Organic growth reached 7.7%, with real internal growth (RIG)
of 6.4% and pricing of 1.2%. Growth was broad-based across most
geographies, supported by early signs of recovery from out-of-home
channels, improved pricing and market share gains.
-- Foreign exchange reduced sales by 5.3% due to the continued
appreciation of the Swiss franc against most currencies. Net
divestitures had a negative impact of 1.0%. As a result, total
reported sales increased by 1.3% to CHF 21.1 billion (3M-2020: CHF
20.8 billion).
-- Portfolio management on track. The sale of Nestlé's regional
spring water brands, purified water business and beverage delivery
service in the U.S. and Canada was completed on March 31, 2021. The
acquisition of Essentia Water was completed on March 5, 2021.
-- Full-year 2021 outlook confirmed: continued increase in
organic sales growth towards a mid single-digit rate. Underlying
trading operating profit margin with continued moderate
improvement. Underlying earnings per share in constant currency and
capital efficiency expected to increase.
Mark Schneider, Nestlé CEO, commented: "We are pleased with
Nestlé's strong organic sales growth in the first quarter, building
on broad-based contributions from most geographies and product
categories. Our growth was fueled by disciplined execution,
enhanced digital capabilities and rapid innovation, resulting in
further market share gains. Retail sales saw solid growth and
out-of-home channels saw signs of improvement. We confirm our
guidance for the year and our mid-term outlook for sustained mid
single-digit organic growth.
The development of COVID-19 vaccines has given the world hope
and we are supporting the broad and equitable delivery of vaccines
in the communities where we operate. Our partnership with the
International Federation of Red Cross and Red Crescent Societies is
helping to get vaccines to those who need them most. In these
challenging times, we can truly demonstrate how business can act as
a force for good and help accelerate the recovery."
Nestlé
Total .Health Other
Group Zone AMS Zone EMENA Zone AOA Nespresso Science Businesses
------ -------- ---------- -------- ------------ -------------- -----------
Sales 3M-2021
(CHF m) 21 089 8 244 5 203 5 094 1 571 930 47
Sales 3M-2020
(CHF m)* 20 812 8 347 5 313 4 974 1 359 765 54
----------------- ------ -------- ---------- -------- ------------ -------------- -----------
Real internal
growth (RIG) 6.4% 4.8% 3.8% 8.8% 16.3% 9.4% -11.1%
Pricing 1.2% 2.4% 0.6% 0.3% 0.8% 0.1% 0.3%
Organic growth 7.7% 7.2% 4.4% 9.1% 17.1% 9.5% -10.8%
Net M&A -1.0% 0.3% -3.7% -3.4% * 0.1% 17.3% 0.0%
Foreign exchange -5.3% -8.6% -2.8% -3.4% * 1.4% -5.2% -2.3%
Reported sales
growth 1.3% -1.2% -2.1% 2.3% 15.6% 21.6% -13.2%
----------------- ------ -------- ---------- -------- ------------ -------------- -----------
* 2020 figures restated following the disclosure of Nestlé
Health Science and Nespresso as standalone segments from 2021
onwards (previously combined and presented in Other
Businesses).
Group sales
Organic growth reached 7.7%, with RIG of 6.4%. Pricing increased
to 1.2%, reflecting input cost inflation.
Growth was broad-based across most geographies. Organic growth
was 5.0% in developed markets, based mostly on RIG. Pricing was
positive. Growth in emerging markets was 11.4%, with strong RIG and
positive pricing.
Most product categories delivered strong organic growth. Coffee
was the largest contributor to growth, fueled by strong demand for
Nespresso, Nescafé and Starbucks products. Dairy grew at a
double-digit rate, based on elevated demand for home-baking
products and fortified milks. Purina PetCare saw high single-digit
growth, led by its science-based and premium brands Purina Pro
Plan, Purina ONE and Felix. Prepared dishes and cooking aids posted
broad-based double-digit growth, with robust momentum across most
brands. Vegetarian and plant-based food offerings continued to see
strong double-digit growth, led by Garden Gourmet. Confectionery
grew at a double-digit rate, supported by improved growth in
impulse and gifting products as well as sustained momentum in
home-baking products. Nestlé Health Science reported high
single-digit growth, reflecting increased demand for vitamins,
minerals and supplements and healthy-aging products. Infant
Nutrition saw a sales decrease. A return to positive growth in
China was more than offset by sales declines in other markets, due
to consumer stockpiling in March last year and lower birth rates in
the context of the pandemic. Water recorded negative growth due to
its high exposure to out-of-home channels.
By channel, retail sales posted high single-digit organic
growth, reflecting continued strong demand for at-home consumption.
Sales declines in out-of-home channels moderated, with a return to
positive growth in AOA. E-commerce sales grew by 39.6%, reaching
14.5% of total Group sales. Most categories saw strong momentum,
particularly coffee, Purina PetCare and culinary.
Net divestitures decreased sales by 1.0%, largely related to the
divestment of the Herta charcuterie business and the Yinlu peanut
milk and canned rice porridge businesses. Foreign exchange reduced
sales by 5.3%, reflecting the appreciation of the Swiss franc
versus most currencies, particularly in emerging markets. Total
reported sales increased by 1.3% to CHF 21.1 billion.
Portfolio Management
On March 5, 2021, Nestlé completed the acquisition of Essentia
Water, a premium functional water brand in the U.S.
On March 31, 2021, Nestlé completed the sale of its regional
spring water brands, purified water business and beverage delivery
service in the U.S. and Canada to One Rock Capital Partners, in
partnership with Metropoulos & Co. for USD 4.3 billion.
Zone Americas (AMS)
-- 7.2% organic growth: 4.8% RIG; 2.4% pricing.
-- North America posted mid single-digit organic growth, with strong RIG and positive pricing.
-- Latin America reached double-digit organic growth, with positive RIG and pricing.
Sales Sales Organic Net Foreign Reported
3M-2021 3M-2020 RIG Pricing growth M&A exchange Growth
--------- --------- ---- ------- ------- ---- --------- --------
CHF 8.2 CHF 8.3
Zone AMS bn bn 4.8% 2.4% 7.2% 0.3% -8.6% -1.2%
--------- --------- --------- ---- ------- ------- ---- --------- --------
Organic growth was 7.2%, with strong RIG of 4.8%. Pricing
contributed 2.4%, improving in both North and Latin America. Net
acquisitions increased sales by 0.3%. The acquisitions of Freshly
and Essentia Water more than offset the divestiture of the U.S. ice
cream business. Foreign exchange had a negative impact of 8.6%,
reflecting broad-based currency depreciations against the Swiss
franc, particularly in Latin America. Reported sales in Zone AMS
decreased by 1.2% to CHF 8.2 billion.
Zone AMS reported high single-digit organic growth, with a high
base of comparison in 2020. The Zone saw broad-based market share
gains, led by pet food, coffee, dairy and Infant Nutrition.
North America recorded mid single-digit growth, with strong RIG
in most product categories and positive pricing. Frozen and chilled
food was the largest growth contributor, supported by Stouffer's,
Lean Cuisine and the recently launched Life Cuisine. The newly
acquired Freshly business posted strong growth, helped by expanded
distribution. The beverages category grew at a double-digit rate,
with strong demand for Starbucks at-home products, Coffee mate and
Nescafé. Purina PetCare delivered mid single-digit growth, with
strong momentum in e-commerce and premium brands Purina Pro Plan,
Purina ONE and Fancy Feast. Merrick recorded strong growth,
supported by new product launches in Healthy Grains. Home-baking
products, including Toll House and Carnation, saw positive growth.
Sales of ice cream and confectionery in Canada grew at a
double-digit rate, driven by Häagen-Dazs and KitKat. Water and
Nestlé Professional reported negative growth, with sales declines
moderating.
Latin America reached double-digit growth, with both strong RIG
and pricing across geographies and most product categories. Sales
in Brazil grew at a double-digit rate, with strong growth in
confectionery, dairy and coffee. Mexico also reported broad-based
double-digit growth, reflecting high demand for Nescafé and
home-baking brands, La Lechera and Abuelita. Sales in Chile grew at
a double-digit rate, led by ice cream and confectionery. By product
category, dairy, confectionery, Purina PetCare and coffee saw
double-digit growth. Infant Nutrition continued to see positive
sales development, particularly in Mexico and Brazil. Sales in
Nestlé Professional turned positive.
Zone Europe, Middle East and North Africa (EMENA)
-- 4.4% organic growth: 3.8% RIG; 0.6% pricing.
-- Western Europe saw low single-digit organic growth with solid
RIG, partially offset by negative pricing.
-- Central and Eastern Europe reached high single-digit organic
growth, with strong RIG and positive pricing.
-- Middle East and North Africa posted mid single-digit organic
growth, based on positive RIG and pricing.
Sales Sales Organic Net Foreign Reported
3M-2021 3M-2020 RIG Pricing growth M&A exchange growth
--------- --------- ---- ------- ------- ----- --------- --------
CHF 5.2 CHF 5.3
Zone EMENA bn bn 3.8% 0.6% 4.4% -3.7% -2.8% -2.1%
----------- --------- --------- ---- ------- ------- ----- --------- --------
Organic growth reached 4.4%, with strong RIG of 3.8% supported
by favorable mix. Pricing turned positive, contributing 0.6%. Net
divestitures reduced sales by 3.7%, largely related to the
divestment of the Herta charcuterie business. Foreign exchange
negatively impacted sales by 2.8%. Reported sales in Zone EMENA
decreased by 2.1% to CHF 5.2 billion.
Zone EMENA reported mid single-digit organic growth, with a high
base of comparison in 2020. Each region posted positive growth,
with strong momentum in Russia, Turkey, the United Kingdom and
Italy. The Zone continued to see broad-based market share gains,
including in pet food, coffee, plant-based food products and Infant
Nutrition.
By product category, the key growth drivers were coffee and
Purina PetCare, fueled by continued momentum in e-commerce and new
product launches. Coffee saw double-digit growth, with strong
demand for Nescafé and Starbucks products. Nescafé Farmers Origins,
a new range of coffee capsules for Nespresso machines, was launched
in Spain. Sales in Purina PetCare grew at a double-digit rate,
driven by premium brands Purina Pro Plan, Purina ONE and Felix.
Tails.com and Lily's Kitchen also saw strong momentum, supported by
continued distribution expansion. Culinary posted high single-digit
growth, led by Maggi seasoning, Garden Gourmet and the recently
acquired Mindful Chef business. Sales of ambient dairy in the
Middle East and North Africa grew at a double-digit rate, with
strong growth in Nido. Confectionery reported low single-digit
growth, with strong sales developments in France and Russia. Incoa,
a premium chocolate made exclusively with cocoa fruit and no added
sugar, was launched in France and the Netherlands with other
European markets to follow. Infant Nutrition posted negative growth
due to consumer stockpiling in March last year and lower birth
rates in the context of the pandemic. Water and Nestlé Professional
reported a sales decrease, with improvement towards the end of the
quarter.
Zone Asia, Oceania and sub-Saharan Africa (AOA)
-- 9.1% organic growth: 8.8% RIG; 0.3% pricing.
-- China posted double-digit organic growth, based on strong RIG
partially offset by slightly negative pricing.
-- South-East Asia saw low single-digit organic growth, with
positive RIG and slightly negative pricing.
-- South Asia reported double-digit organic growth, with strong RIG and positive pricing.
-- Sub-Saharan Africa recorded double-digit organic growth, led
by strong RIG and positive pricing.
-- Japan, South Korea and Oceania combined saw low single-digit
organic growth. Positive RIG was partially offset by slightly
negative pricing.
Sales Sales Organic Net Foreign Reported
3M-2021 3M-2020 RIG Pricing growth M&A Exchange Growth
--------- --------- ---- ------- ------- ----- --------- --------
CHF 5.1 CHF 5.0
Zone AOA bn bn 8.8% 0.3% 9.1% -3.4% -3.4% 2.3%
--------- --------- --------- ---- ------- ------- ----- --------- --------
Organic growth reached 9.1%, with RIG of 8.8%. Pricing increased
to 0.3%. Net divestitures had a negative impact of 3.4%, largely
related to the divestment of the Yinlu peanut milk and canned rice
porridge businesses in China. Foreign exchange reduced sales by
3.4%. Reported sales in Zone AOA increased by 2.3% to CHF 5.1
billion.
Zone AOA reported high single-digit organic growth, helped by a
low base of comparison in China. Outside of China, the Zone grew at
a mid single-digit rate. Most categories gained market share,
particularly coffee and pet food.
China saw double-digit growth, helped by a recovery in
out-of-home channels and the timing of Chinese New Year. Growth was
broad-based across most product categories, reflecting continued
momentum in e-commerce and a strong innovation pipeline. The
largest growth contributor was Nestlé Professional, as sales
improved significantly. Coffee, culinary, dairy and confectionery
all grew at double-digit rates. Growth in Infant Nutrition turned
positive. Purina Petcare reported strong growth, led by premium
offerings such as Purina Pro Plan and veterinary products.
South-East Asia posted low single-digit growth in a difficult
economic environment. Positive sales developments for most
categories were partially offset by sales decreases in out-of-home
channels and Infant Nutrition. South Asia recorded double-digit
growth, with positive contributions from Maggi, Nescafé and KitKat.
Sub-Saharan Africa grew at a double-digit rate, based on strong
sales developments for Maggi, Milo and Nescafé. Japan posted mid
single-digit growth, led by KitKat and Starbucks products. Sales in
South Korea grew at a strong double-digit rate, driven by coffee.
Oceania reported slightly negative growth due to a high base of
comparison.
By product category, sales in culinary, dairy and coffee all
grew at double-digit rates . Infant Nutrition posted slightly
negative growth, but gained market share in South Asia and Africa.
Growth in confectionery and Nestlé Professional turned positive,
led by China and Japan.
Nespresso
-- 17.1% organic growth: 16.3% RIG; 0.8% pricing.
Sales Sales Organic Net Foreign Reported
3M-2021 3M-2020 RIG Pricing growth M&A exchange growth
--------- --------- ----- ------- ------- ----- --------- --------
CHF 1.6 CHF 1.4
Nespresso bn bn 16.3% 0.8% 17.1% -0.1% -1.4% 15.6%
---------- --------- --------- ----- ------- ------- ----- --------- --------
Organic growth reached 17.1%, based on strong RIG of 16.3% and
pricing of 0.8%. Foreign exchange negatively impacted sales by
1.4%. Reported sales in Nespresso increased by 15.6% to CHF 1.6
billion.
Nespresso reported double-digit organic growth, reflecting
continued expansion of the Vertuo system and strong demand for the
Original system. Growth was fueled by continued strong momentum in
e-commerce and innovation. New products included the expansion of
the World Explorations range, including Buenos Aires and Shanghai,
and new limited editions in the Master Origins range, and a new
Master Origins offering, Nicaragua La Cumplida Refinada.
By geography, the Americas, EMENA and AOA all posted
double-digit growth. North America was the strongest contributor to
growth and continued to gain market share.
In March, Nespresso announced a CHF 117 million investment in
the expansion of its Avenches production and distribution center in
Switzerland to meet growing consumer demand worldwide.
Nestlé Health Science
-- 9.5% organic growth: 9.4% RIG; 0.1% pricing.
Sales Sales Organic Net Foreign Reported
3M-2021 3M-2020 RIG Pricing growth M&A exchange growth
--------- --------- ---- ------- ------- ----- --------- --------
Nestlé CHF 0.9 CHF 0.8
Health Science bn bn 9.4% 0.1% 9.5% 17.3% -5.2% 21.6%
---------------- --------- --------- ---- ------- ------- ----- --------- --------
Organic growth was 9.5%, with strong RIG of 9.4% and pricing of
0.1%. Net acquisitions increased sales by 17.3%, largely related to
the acquisitions of Vital Proteins, Zenpep and Aimmune. Foreign
exchange negatively impacted sales by 5.2%. Reported sales in
Nestlé Health Science increased by 21.6% to CHF 0.9 billion.
Nestlé Health Science posted high single-digit organic growth,
building on a strong first quarter last year. Vitamins, minerals
and supplements that support health and the immune system continued
to see strong demand. Growth was supported by momentum in
e-commerce, new product launches and geographic expansion.
Consumer Care posted double-digit growth, with strong
contributions from Garden of Life and Vital Proteins. Persona, the
subscription-based personalized vitamin business, more than doubled
its sales. Healthy-aging products grew at a double-digit rate.
Medical Nutrition saw mid single-digit growth with robust sales
developments for acute and adult medical care products,
particularly Peptamen and Compleat.
By geography, the Americas posted double-digit growth. Sales in
EMENA and AOA grew at a mid single-digit rate.
Business as a force for good: Supporting equitable COVID-19
vaccination
The development of effective vaccines against COVID-19 has given
the world hope. Widespread vaccination is crucial to overcoming the
pandemic, and Nestlé advocates for everyone getting vaccinated in
line with public health priorities.
There is an urgent need to advance equitable access of vaccines,
particularly in low-income countries. That is why Nestlé has
entered into a new partnership with the International Federation of
Red Cross and Red Crescent Societies (IFRC) and National Red Cross
and Red Crescent Societies, to support the delivery of vaccines to
underserved communities around the world.
The partnership includes action at the global level, as well as
targeted support in vulnerable countries and regions. Much of the
work will focus on the establishment of vaccination sites, the
transport of vaccines, information campaigns and promotion of the
vaccination of high-risk groups.
Together with other partnerships, Nestlé has committed CHF 10
million to equitable vaccination efforts to date. Nestlé recently
announced a contribution to support COVAX to rapidly scale up the
international delivery of vaccines to low-income countries. We are
also working directly with government authorities in some countries
to provide donations and support for local vaccination
programs.
The support for equitable access to vaccines is just the latest
phase in Nestlé's response to the COVID-19 crisis. We will continue
to engage in the fight against the pandemic and its consequences,
protecting people, maintaining global food supply and giving a
helping hand in our local communities.
Read more:
https://www.nestle.com/media/news/nestle-partners-ifrc-equitable-covid-19-vaccination
Outlook
Full-year 2021 outlook confirmed: continued increase in organic
sales growth towards a mid single-digit rate. Underlying trading
operating profit margin with continued moderate improvement.
Underlying earnings per share in constant currency and capital
efficiency expected to increase.
Contacts
Media
Christoph Meier
Tel.: +41 21 924 2200
mediarelations@nestle.com
Investors
Luca Borlini
Tel.: +41 21 924 3509
ir@nestle.com
Annex
Three-month sales overview by operating segment
Nestlé
Total .Health Other
Group Zone AMS Zone EMENA Zone AOA Nespresso Science Businesses
------ -------- ---------- -------- ------------ -------------- -----------
Sales 3M-2021
(CHF m) 21 089 8 244 5 203 5 094 1 571 930 47
Sales 3M-2020
(CHF m)* 20 812 8 347 5 313 4 974 1 359 765 54
----------------- ------ -------- ---------- -------- ------------ -------------- -----------
Real internal
growth (RIG) 6.4% 4.8% 3.8% 8.8% 16.3% 9.4% -11.1%
Pricing 1.2% 2.4% 0.6% 0.3% 0.8% 0.1% 0.3%
Organic growth 7.7% 7.2% 4.4% 9.1% 17.1% 9.5% -10.8%
Net M&A -1.0% 0.3% -3.7% -3.4% * 0.1% 17.3% 0.0%
Foreign exchange -5.3% -8.6% -2.8% -3.4% * 1.4% -5.2% -2.3%
Reported sales
growth 1.3% -1.2% -2.1% 2.3% 15.6% 21.6% -13.2%
----------------- ------ -------- ---------- -------- ------------ -------------- -----------
Three-month sales overview by product
Milk Prepared
Powdered products Nutrition dishes
Total & liquid & ice & Health & cooking
Group beverages Water cream Science aids Confec-tionery PetCare
------ ---------- ----- --------- --------- ---------- -------------- -------
Sales 3M-2021
(CHF m) 21 089 5 771 1 389 2 598 2 995 3 016 1 700 3 620
Sales 3M-2020
(CHF m) 20 812 5 440 1 586 2 642 3 058 2 952 1 632 3 502
--------------- ------ ---------- ----- --------- --------- ---------- -------------- -------
Real internal
growth (RIG) 6.4% 9.3% -8.1% 11.6% -1.1% 9.9% 9.1% 7.7%
Pricing 1.2% 0.6% 2.5% 4.1% 0.7% 0.3% 1.2% 1.0%
Organic growth 7.7% 9.9% -5.6% 15.7% -0.5% 10.2% 10.3% 8.7%
--------------- ------ ---------- ----- --------- --------- ---------- -------------- -------
* 2020 figures restated following the disclosure of Nestlé
Health Science and Nespresso as standalone segments from 2021
onwards (previously combined and presented in Other
Businesses).
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