“Nestlé Romania ended the first 6 months of the year with an organic growth of 19.2%, growth coming from all 10 divisions. During this period, we donated approximately 34 tons of products worth over 200,000 Euro to the Food Bank, and collaborated with 34 NGOs and student associations. We also continued our partnership with Junior Achievement and educational projects in schools, with the participation of over 80,000 children. I am glad to be part of a team that achieves such remarkable results and to whom I thank for all the efforts made so far. We want to continue at the same pace, both in business development and socially, to enjoy together the tenth consecutive year of growth”, said Silvia Sticlea, Country Manager Nestlé Romania.
On a group level, Nestlé, the world’s largest, most diversified food and beverages company, reported a 1.6% increase in total sales, up to 46.3 billion Swiss francs (around EUR48 billion), as compared to 45.6 billion Swiss francs in the first six months of 2022, following a negative impact of the exchange rate (6.7%) and of net acquisitions (0.4%).
Nestle group’s global organic sales rose by 8.7% on the year to 46.3 billion Swiss francs during January-June 2023 period, supported by a 9.5% increase in pricing which offset a RIG (real internal growth) of -0.8%, the group said in a separate press statement.
“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,” stated Mark Schneider, Nestlé CEO.
Nestle’s sales in Europe rose by an annual 8.9% to 9.5 billion Swiss francs ($11.92 billion/EUR9.97 billion) during the first six months of 2023. The regional performance came on the back of an 11.3% annual increase in pricing, while RIG was negative at -2.4%.
Growth was broad-based across most geographies and categories. In developed markets, organic growth was 8.0%, led by pricing with negative RIG. In emerging markets, organic growth was 9.6%, driven by pricing and flat RIG.
“By product category, Purina PetCare was the largest contributor to organic growth, with strong momentum for both wet and dry offerings. Purina ONE, Purina Pro Plan and Friskies all recorded double-digit growth. Coffee saw high single-digit growth, with positive sales developments across brands and a continued recovery for out-of-home channels. Infant Nutrition posted double-digit growth, with broad-based contributions across brands and geographies. Dairy reported high single-digit growth, with strong demand for coffee creamers and affordable fortified milks. Confectionery recorded double-digit growth, fueled by a strong sales development for KitKat. Prepared dishes and cooking aids posted mid single-digit growth, led by Maggi. Nestlé Health Science recorded low single-digit growth, with a return to positive growth for vitamins, minerals and supplements in the second quarter, led by Garden of Life and Pure Encapsulations. Despite temporary capacity constraints for Perrier, water posted mid single-digit growth led by S.Pellegrino and Acqua Panna,” the statement reads.
By channel, organic growth in retail sales remained robust at 8.0%. E-commerce sales grew by 13.5%, reaching 16.7% of total Group sales. Organic growth of out-of-home channels was 17.1%.
Net divestitures decreased sales by 0.4%, largely related to the divestment of a majority stake in Freshly as well as the disposal of the Gerber Good Start infant formula brand. The impact on sales from foreign exchange was negative at 6.7%, following broad-based appreciation of the Swiss Franc. Total reported sales increased by 1.6% to 46.3 billion Swiss francs.