Slide 1: Full-year results 2023
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Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements.
Slide 3: Full-year results 2023 – Mark Schneider, CEO
Full-year results 2023 Mark Schneider, CEO
Slide 4: Key messages
Key messages Resilient performance in the context of soft consumer demand • Strong organic sales growth of 7.2%, led by pricing, with slightly negative RIG • Underlying trading operating profit margin up 40 bps in constant currency • Underlying earnings per share growth of 8.4% in constant currency
Slide 5: Historically high-level of food price inflation
Historically high-level of food price inflation OECD countries: annual food price inflation % 18 16.3% 16 14.7% 14 12 10% 10 8 6.3% 8.8% 6 4 2 0.4% 3.5% 2.4% 0 Source: OECD CPI: Food and non-alcoholic beverages; Annual growth rate (%), 1971 to 2022; Q3 2023 or latest available, Annual growth rate (%
Slide 6: 2023 highlights Nestlé’s ability to generate growth catalysts
2023 highlights Nestlé’s ability to generate growth catalysts PetCare Nespresso KitKat HMO*products Nestlé Professional Innovation-driven Premier D2C business Powerhouse brand Driving growth in Pivoting to fast-growing business focused on delivering high-quality with industry-leading premium segment
Slide 7: 2024 operational priorities
2024 operational priorities • Ensure execution excellence • Raise marketing/growth investments, focus on fast-growing billionaire brands • Deliver RIG-led growth • Restore gross margin and further increase free cash flow 7 February 22, 2024 Nestlé full-year results 2023
Slide 8: Nestlé Health Science: overcoming operational hurdles to capture full strategic potential
Nestlé Health Science: overcoming operational hurdles to capture full strategic potential • Operating in segments with attractive long-term trends – leading positions in Consumer Care and Medical Nutrition – high single-digit mid-term growth outlook – strong, focused portfolio across brands, price p
Slide 9: Premiumization is core to our growth strategy
Premiumization is core to our growth strategy Premium products Attractive growth Strong margin Increasing contribution to sales (3x vs. 2013) 11% 11.5% +230 bps 36% 10-year CAGR Underlying TOP margin % of premium products (2013-2023) Premium vs. Group vs. total group sales Driving premiumization thr
Slide 10: Growing healthy aging solutions
Growing healthy aging solutions Favorable demographic trend: population over 65 doubling to 1.6 billion by 2050 Active lifestyle support Nutritional balance Life stage transitions Preventive care Collagen Functional foods Nutritional gaps High-protein Menopause Cardio-health Immunity Cellular suppor
Slide 11: Helping consumers on their weight-loss journey
Helping consumers on their weight-loss journey Supporting nutritional needs of GLP-1 consumers Muscle mass preservation Micronutrient deficiencies Gastrointestinal health Preserving lean body mass Filling nutritional gaps Managing digestive issues with high-protein products Managing weight and blood
Slide 12: Good for You: helping people enjoy a tasty, balanced diet
Good for You: helping people enjoy a tasty, balanced diet Grow • Grow the sales of more nutritious offerings • Continue to invest in R&D and launch new technologies to reduce sugar and fat • Increased share of more nutritious products* from 57% to 59% in 2023 Guide • Implement industry-leading respo
Slide 13: Good for the Planet: advancing towards Net Zero
Good for the Planet: advancing towards Net Zero • >13.5% net reduction of GHG emissions versus 2018 baseline* • >15.3% reduction of methane versus the 2018 baseline* • On track with our Net Zero plan • 91.9% of electricity at our sites globally from renewable sources * Covers emissions related to ou
Slide 14: 2024 guidance, 2025 mid-term targets fully confirmed
2024 guidance • organic sales growth around 4% • moderate increase in underlying trading operating profit margin • underlying earnings per share growth in constant currency between 6% and 10% 2025 mid-term targets fully confirmed • mid single-digit organic sales growth • underlying trading operating
Slide 15: Full-year results 2023 – François-Xavier Roger, CFO
Full-year results 2023 François-Xavier Roger, CFO
Slide 16: Resilient financial performance in 2023
Resilient financial performance in 2023 Organic Underlying Underlying Free growth TOP margin EPS growth cash flow (in constant currency) (in CHF) +7.2% 17.3% +8.4% 10.4 bn +40 bps CHF 4.80 +3.8 billion in constant currency reported vs. 2022 16 February 22, 2024 Nestlé full-year results 2023
Slide 17: Full-year sales growth
Full-year sales growth OG +7.2% -0.9% +7.5% -7.8% -0.3% 94.4 93.0 Reported sales growth -1.5% FY-2022 sales RIG Pricing Net M&A Foreign FY-2023 sales CHF bn exchange CHF bn 17 February 22, 2024 Nestlé full-year results 2023
Slide 18: Broad-based growth across geographies
Broad-based growth across geographies Sales split 2023 organic sales growth North Europe America 24% 35% 9.3% Greater China 7.3% 7.6% Nestlé 6% Group 6.6% avg. 7.2% 4.5% Latin AOA America 14% 21% North Europe Asia Latin Greater America Oceania America China Africa Each geography includes zones, Nesp
Slide 19: Broad-based growth across categories
Broad-based growth across categories 2023 sales split 2023 organic sales growth Water 4% Confectionery 12.1% 9% Powdered & liquid beverages 27% 8.5% Milk products & Ice cream 6.4% 6.1% 5.4% 12% 4.9% 4.9% Prepared dishes & cooking aids PetCare Powdered PetCare Nutrition Prepared Milk products Confect
Slide 20: Returning to RIG-led growth
Returning to RIG-led growth Deflation Pandemic Inflation Normalization Normalization Pricing % RIG % 8.2% 7.5% 5.5% 2.9% 3.2% 2.4% 2.5% 2.0% 1.6% 0.8% 0.5% 0.6% 0.4% 0.1% 0.8% -0.3% 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 February 22, 2024 Nestlé full-year results 2023
Slide 21: Gross margin recovery and increased marketing investment
Gross margin recovery and increased marketing investment 17.X% 17.2% 17.4% 17.1% +60 bps -80 bps +70 bps -30 bps 17.3% 17.1% Margin +20 bps on a reported basis and +40 bps in constant currency Underlying Gross Distribution Advertising & Administration, Underlying TOP margin margin* Marketing R&D TOP
Slide 22: Free cash flow returning to historical levels
Free cash flow returning to historical levels In CHF bn 11.9 10.8 10.2 10.4 9.4 8.7 6.6 Impacted by decision to temporarily increase inventories and high capex level 2017 2018 2019 2020 2021 2022 2023 22 February 22, 2024 Nestlé full-year results 2023
Slide 23: Dividend more than tripled over the last 18 years in CHF
Dividend more than tripled over the last 18 years in CHF 29th consecutive dividend increase CHF 3.50 Proposed CHF 3.00 3.00 2.50 2.00 1.50 1.00 0.50 0.20 0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 24: Full-year results 2023 Q&A
Full-year results 2023 Q&A 24 February 22, 2024 Nestlé full-year results 2023
Slide 25: Thank you!
Thank you! 25 February 22, 2024 Nestlé full-year results 2023