Nestle S.a. · SIX:NESN
Nestle — Q1 2020 Earnings Presentation
23 slides from Nestle's earnings presentation, Apr 24, 2020
Slide 1: Three-month Sales 2020 Investor call
Three-month Sales 2020 Investor call
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: 2020 Three-month sales Investor call
2020 Three-month sales Investor call Mark Schneider, CEO
Slide 4: Responding to COVID-19
Responding to COVID-19 • Key priorities: • Safeguarding people’s health • Ensuring business continuity • Supporting communities • Frontline workers have been instrumental in securing supply and meeting consumer needs 4 April 24, 2020 Nestlé three-month sales 2020
Slide 5: Key messages
Key messages • Nestlé remains resilient given its diversified portfolio of products and geographies • Organic growth of 4.3% • Strong momentum in the Americas and EMENA, AOA with negative growth • High demand for Purina PetCare, culinary, coffee and Nestlé Health Science products • Disciplined portf
Slide 6: Exploring strategic options for Yinlu-branded businesses
Exploring strategic options for Yinlu-branded businesses Review peanut milk and canned rice porridge businesses • Sales: ~CHF 700 m in 2019 • Strong local brand heritage with nationwide distribution reach • ~11 000 employees and 5 factories Retain and develop high-growth Nescafé ready-to-drink coffe
Slide 7: 2020 guidance
2020 guidance As it is still too early to assess the full impact of COVID-19, we maintain our original full-year guidance for the time being • Continued improvement in organic sales growth and underlying trading operating margin • Increase in underlying earnings per share in constant currency and ca
Slide 8: Three-month sales 2020
Three-month sales 2020 François-Xavier Roger, CFO
Slide 9: Three-month sales growth
Three-month sales growth OG 4.3% +4.7% -0.4% -4.7% -5.8 % 22.2 20.8 Reported sales growth -6.2% -30 3M 2019 sales RIG Pricing Net M&A Foreign exchange 3M 2020 sales CHF bn CHF bn 9 April 24, 2020 Nestlé three-month sales 2020
Slide 10: Business impact of COVID-19
Business impact of COVID-19 Geographies Categories Sales channels North America and Europe Prepared dishes and cooking Retail and e-commerce aids, Purina PetCare, coffee, and Nestlé Health Science products China Ice cream and confectionery Out-of-home and food service 10 April 24, 2020 Nestlé three-
Slide 11: Growth by geography
Growth by geography AMS EMENA AOA Sales (in CHF) 9.2 bn 6.3 bn 5.3 bn RIG 8.8% 6.8% -3.8% Pricing -0.4% -0.8% 0.0% OG 8.4% 6.0% -3.8% Each geography includes Zones, Nespresso, Nestlé Health Science 11 April 24, 2020 Nestlé three-month sales 2020
Slide 12: Strong growth in developed markets
Strong growth in developed markets Developed Emerging Sales (in CHF) 12.0 bn 8.8 bn % of group sales 58% 42% RIG 8.8% -0.3% Pricing -1.4% 0.8% OG 7.4% 0.5% 12 April 24, 2020 Nestlé three-month sales 2020
Slide 13: Zone AMS
Zone AMS Sales CHF 8.3 bn Real internal growth +7.9% Pricing -0.5% Organic growth +7.4% • Increased organic growth, based on strong RIG • North America reported high single-digit growth, led by Purina PetCare, coffee and frozen food • Latin America saw mid single-digit growth, supported by most geog
Slide 14: Zone EMENA
Zone EMENA Sales CHF 5.3 bn Real internal growth +8.2% Pricing -1.1% Organic growth +7.1% • Strong RIG-based organic growth • Most markets saw increased growth • Prepared dishes and cooking aids, coffee, Purina PetCare and infant nutrition reported double-digit growth 14 April 24, 2020 Nestlé three-
Slide 15: Zone AOA
Zone AOA Sales CHF 5.0 bn Real internal growth -4.6% Pricing 0.0% Organic growth -4.6% • China posted double-digit negative organic growth, mainly due to a sales decline in the out-of-home channel and timing of Chinese New Year • Other sub-regions posted mid single-digit growth • Purina PetCare, Mil
Slide 16: Other Businesses
Other Businesses Sales CHF 2.2 bn Real internal growth +8.0% Pricing +0.5% Organic growth +8.5% • Nespresso sustained mid single-digit organic growth, led by North America and AOA • Nestlé Health Science accelerated to double-digit organic growth, supported by strong momentum for consumer and medica
Slide 17: Contrasted category dynamics
Contrasted category dynamics 13.9% 7.1% 4.3% 3.9% 2.9% 2.1% Confectionery Water Total group Powdered and PetCare Nutrition and Prepared dishes Milk products Liquid Beverages Health Science and cooking aids and Ice cream -1.4% -4.2% 17 April 24, 2020 Nestlé three-month sales 2020
Slide 18: Three-month Sales 2020 Supporting slides
Three-month Sales 2020 Supporting slides
Slide 19: 3M-2020 Operating segments – topline summary
3M-2020 Operating segments – topline summary 3M-2020 sales Reported sales Sales RIG Pricing OG Net M&A F/X growth (CHF m) % % % % % % Zone AMS 8 347 7.9 -0.5 7.4 -4.0 -6.1 -2.7 Zone EMENA 5 313 8.2 -1.1 7.1 -0.5 -6.2 0.4 Zone AOA 4 974 -4.6 0.0 -4.6 0.0 -5.1 -9.7 Other Businesses 2 178 8.0 0.5 8.5 -
Slide 20: 3M-2020 Products – topline summary
3M-2020 Products – topline summary 3M-2020 sales Sales RIG Pricing OG (CHF m) % % % Powdered and liquid beverages 5 440 3.8 0.1 3.9 Water 1 586 1.9 -3.3 -1.4 Milk products and ice cream 2 642 2.0 0.1 2.1 Nutrition and Health Science 3 058 2.8 0.1 2.9 Prepared dishes and cooking aids 2 952 7.9 -0.8 7
Slide 21: 3M-2020 historical eight quarters
3M-2020 historical eight quarters Period RIG Pricing OG % % % Q2-2018 2.4 0.2 2.6 Q3-2018 2.0 0.9 2.9 Q4-2018 2.8 0.9 3.7 Q1-2019 2.2 1.2 3.4 Q2-2019 3.0 0.9 3.9 Q3-2019 3.9 -0.2 3.7 Q4-2019 2.5 0.5 3.0 Q1-2020 4.7 -0.4 4.3 21 April 24, 2020 Nestlé three-month sales 2020
Slide 22: 3M-2020 currency overview
3M-2020 currency overview Weighted average rate 3M-2019 3M-2020 Variation in % US Dollar 1 USD 0.996 0.967 -2.8 Euro 1 EUR 1.133 1.067 -5.8 Chinese Yuan Renminbi 100 CNY 14.752 13.893 -5.8 Brazilian Real 100 BRL 26.433 21.520 -18.6 Philippine Peso 100 PHP 1.905 1.903 -0.1 UK Pound Sterling 1 GBP 1.3
Slide 23: Abbreviations
Abbreviations • OG Organic growth • RIG Real internal growth • AMS Americas • EMENA Europe, Middle East, and North Africa • AOA Asia, Oceania, and sub-Saharan Africa 23 April 24, 2020 Nestlé three-month sales 2020