- 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.