Nestle S.A.: reports half-year results for 2023

Vevey / CH. (nsa) Swiss Nestle S.A. reported half-year results for 2023 (H1-2023).

  • Organic growth reached 8.7 percent, with pricing of 9.5 percent and real internal growth (RIG) of – 0.8 percent. Growth was broad-based across geographies and categories.
  • Total reported sales increased by 1.6 percent to CHF 46.3 billion (6M-2022: CHF 45.6 billion). Foreign exchange decreased sales by 6.7 percent. Net acquisitions had a negative impact of 0.4 percent.
  • The underlying trading operating profit (UTOP) margin was 17.1 percent, up 20 basis points on a reported basis and 30 basis points in constant currency. The trading operating profit (TOP) margin increased by 120 basis points to 15.9 percent on a reported basis, reflecting one-off items in the prior year.
  • Underlying earnings per share increased by 11.1 percent in constant currency and increased by 4.1 percent on a reported basis to CHF 2.43. Earnings per share increased by 10.6 percent to CHF 2.13 on a reported basis.
  • Free cash flow increased by CHF 1.9 billion to CHF 3.4 billion, mainly reflecting lower inventory levels.
  • Full-year 2023 outlook updated: we are increasing organic sales growth guidance to a range of 7 percent to 8 percent. The underlying trading operating profit margin is expected to be between 17.0 percent and 17.5 percent. Underlying earnings per share in constant currency is expected to increase between 6 percent and 10 percent.
CEO Mark Schneider: «We pursued our strategic priorities with discipline and focus in a fast-evolving consumer environment. Based on the strong performance in the first half of the year we upgrade our organic sales growth outlook for 2023. At-home consumption post-Covid has now normalized, removing a growth drag on some of our categories. Out-of-home channels continue to see strong growth momentum. 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. Combined with ongoing portfolio management and optimization as well as the continued implementation of our sustainability initiatives, we are well-positioned to grow and to generate value for our stakeholders.» For additional information please read the Company’s PDF file below (308 KB):