Nestlé: leap in organic growth (+ 8%) in the half year
Turnover of 41.9 billion Chf, net profit of 5.9 billion
Nestlé recorded a 1.1% increase in its net profit in the first half of the year to 5.9 billion Swiss francs (the equivalent of 5.4 billion euros) and an increase in turnover of 1, 5% to 41.8 billion. Excluding currency effects and acquisitions, ie at the organic level, sales rose by 8.1 percent. The food group has therefore raised its growth target for 2021 to 5-6%, following the increase in sales, driven by coffee and pet products.
Growth was large in most geographies: + 6.7% in developed markets, and + 10% in emerging markets. The largest contribution to organic growth came from coffee, fueled by strong demand for the three main brands Nescafé, Nespresso and Starbucks. Starbucks products grew by 16.7%, with sales reaching 1.4 billion francs in 79 markets. Purina PetCare also experienced double-digit growth led by the scientific and premium brands Purina Pro Plan, Purina ONE and Felix, as well as veterinary products. Ready meals and the offer of plant-based products are growing, with sales of the Garden Gourmet brand also growing in double figures.
Dairy products and sweets are also good. Strong growth for Nestlé Health Science sales following strong demand for vitamins, minerals, supplements and healthy aging products.
Infant Nutrition has seen a drop in sales, impacted by lower birth rates in the context of the pandemic. Finally, the waters returned to positive growth, driven by the international premium brands S. Pellegrino and Perrier.
"Through rapid innovation, strong brand support, increased digitization and rigorous portfolio management, we have laid the foundation for delivering organic growth at a steady figure for years to come", commented Mark Schneider, CEO of Nestlé. .
"Nestlé continues to invest in profitable future growth", he continued. "We are creating a global leader in vitamins, minerals and supplements with the acquisition of core brands of The Bountiful Company. The expansion of our partnership with Starbucks into ready-to-drink coffee will open up new opportunities in a fast-growing segment. Our choices strong execution and decisive actions on sustainability allow us to create value for all stakeholders", he concluded.
EFA News - European Food Agency