Nestle S.A.: reports three-month sales for 2022

Vevey / CH. (nsa) Swiss Nestle S.A. reported three-month sales for 2022 (3M-2022).

  • Organic growth reached 7.6 percent, with real internal growth (RIG) of 2.4 percent and pricing of 5.2 percent. Growth was broad-based across most geographies and categories, with increased pricing, continued momentum in retail sales and a further recovery in out-of-home channels.
  • Total reported sales increased by 5.4 percent to CHF 22.2 billion (3M-2021: CHF 21.1 billion). Foreign exchange decreased sales by 0.8 percent. Net divestitures had a negative impact of 1.3 percent.
  • Portfolio management on track. In April, Nestle Health Science completed the acquisition of a majority stake in Orgain, a leader in plant-based nutrition.
  • Full-year 2022 outlook confirmed: we expect organic sales growth around 5 percent and underlying trading operating profit margin between 17.0 percent and 17.5 percent. Underlying earnings per share in constant currency and capital efficiency are expected to increase.

CEO Mark Schneider: «In these first months of the year, the war in Ukraine has caused unspeakable human suffering. We remain focused on supporting our colleagues there and providing humanitarian relief, while standing with the international community in the call for peace. Amid this challenging environment, we delivered strong organic sales growth with resilient RIG. We stepped up pricing in a responsible manner and saw sustained consumer demand. Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year. The Nestle team addressed these headwinds and advanced our long-term strategy and sustainability objectives with agility and determination. We confirm our guidance for the year.» And they continue to do business in Russia.