Vevey / CH. (nsa) Swiss Nestle S.A. reported nine-month sales for 2021 and raises full-year organic sales growth guidance. Summary:
- Organic growth reached 7.6 percent, with real internal growth (RIG) of 6.0 percent and pricing of 1.6 percent. Growth was supported by continued momentum in retail sales, steady recovery of out-of-home channels, increased pricing and market share gains.
- Total reported sales increased by 2.2 percent to CHF 63.3 billion (9M-2020: CHF 61.9 billion). Foreign exchange reduced sales by 2.0 percent. Net divestitures reduced sales by 3.3 percent.
- Continued progress in portfolio management. On August 9, 2021, Nestle completed the acquisition of the core brands of The Bountiful Company.
- Full-year guidance for 2021 updated: we expect full-year organic sales growth between 6 percent and 7 percent. The underlying trading operating profit margin is expected around 17.5 percent, reflecting initial time delays between input cost inflation and pricing, as well as the one-off integration costs related to the acquisition of The Bountiful Company’s core brands. Beyond 2021, our mid-term outlook for continued moderate margin improvement remains unchanged. Underlying earnings per share in constant currency and capital efficiency are expected to increase this year.
CEO Mark Schneider: «We are pleased with Nestle’s strong organic growth in the nine months, driven by broad-based contributions from most geographies and categories. The relentless focus of our teams on local execution and agility enabled us to navigate input cost inflation and supply chain constraints. In the third quarter, we increased pricing in a responsible manner, while maintaining strong real internal growth. Investments in innovation, digitalization and sustainability further supported growth by enhancing the relevance and differentiation of our offerings. Nestle continues to take actions on sustainability. We recently laid out our plans to support a just transition to regenerative food systems, which will help achieve our climate targets as we work closely with farming communities around the world to improve soil health, restore water cycles and increase biodiversity for the long-term.»
For additional information please read the Company’s PDF file below (264 KB):20211020-NESTLE-9M-SALES-2021