Slide 1: Nine-month sales 2024
Nine-month sales 2024 Investor & analyst 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: Agenda
Agenda • Nine-month 2024 sales – key messages • Nine-month 2024 sales – commentary • CEO perspectives • Q&A 3 October 17, 2024 Nestlé nine-month sales 2024
Slide 4: Nine-month sales 2024 - Laurent Freixe, CEO
Nine-month sales 2024 Laurent Freixe, CEO
Slide 5: Nine-month 2024 sales key messages
Nine-month 2024 sales key messages Organic growth was 2.0% for the first nine months and 1.9% in the third quarter • Real internal growth impacted by: – softening consumer demand – actions taken to reduce customer inventory in the third quarter – consumer hesitancy toward global brands, linked to ge
Slide 6: Nine-month sales 2024 - Anna Manz, CFO
Nine-month sales 2024 Anna Manz, CFO
Slide 7: Nine-month sales growth
Nine-month sales growth OG +2.0% -0.3% 1.6% 0.5% 68.8 -4.1% 67.1 Reported sales growth -2.4% 9M-2023 sales RIG Pricing Net M&A Foreign 9M-2024 sales CHF bn Exchange CHF bn 7 October 17, 2024 Nestlé nine-month sales 2024
Slide 8: RIG positive in a challenging consumer environment
RIG positive in a challenging consumer environment RIG RIG adjusted for the number of trading days Pricing 9.8% 9.1% 6.3% 5.2% 3.4% 2.2% 1.3% 0.4% -0.3% 0.6% -0.5% 0.6% -1.1% -2.0% Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 8 October 17, 2024 Nestlé nine-month sales 2024
Slide 9: Zone North America
Zone North America Quarterly sales evolution OG Pricing RIG 5.6% 4.5% 2.3% -0.8% -0.3% -2.5% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 9M-24 Q3-24 sales comments • OG impacted by softening consumer demand as well as negative pricing, particularly in PetCare and creamers • Reduction of customer inventory related
Slide 10: Zone Europe
Zone Europe Quarterly sales evolution OG Pricing RIG 8.7% 6.2% 4.4% 4.5% 3.3% 1.1% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 9M-24 Q3-24 sales comments • Consumers becoming increasingly cautious and prioritizing affordability • Tough retailer negotiations led to temporary delistings, which reduced RIG by ~50 bp
Slide 11: Zone Asia, Oceania and Africa
Zone Asia, Oceania and Africa Quarterly sales evolution OG Pricing RIG 7.2% 7.5% 3.6% 3.7% 3.4% 3.6% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 9M-24 Q3-24 sales comments • Growth continued to be impacted by pressure on global brands linked to geopolitical tensions • RIG improvement led by Africa and Oceania, pa
Slide 12: Zone Latin America
Zone Latin America Quarterly sales evolution OG Pricing RIG 6.8% 7.2% 3.1% 2.3% 1.9% 0.3% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 9M-24 Q3-24 sales comments • RIG affected by soft consumer demand, as well as impact from customer inventory reductions of ~130 bps • Growth was led by Brazil and Mexico; other mar
Slide 13: Zone Greater China
Zone Greater China Quarterly sales evolution OG Pricing RIG 5.3% 4.5% 3.7% 2.5% 2.5% -0.5% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 9M-24 Q3-24 sales comments • Consumer demand remains soft with heightened price competition in a low-inflationary environment • RIG improvement driven by Infant Nutrition; culinar
Slide 14: Nestlé Health Science
Nestlé Health Science Quarterly sales evolution OG Pricing RIG 11.6% 3.8% 0.6% 2.0% -1.0% -1.8% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 9M-24 Q3-24 sales comments • Recovery on track; strong RIG-led growth, with increased pricing • Vitamins, minerals and supplements delivering to plan, with double-digit growt
Slide 15: Nespresso
Nespresso Quarterly sales evolution OG Pricing RIG 6.6% 5.8% 2.6% 1.9% 1.8% 1.0% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 9M-24 Q3-24 sales comments • Vertuo and out-of-home generating broad-based growth momentum • North America with mid-single digit growth; Europe with slightly negative growth in a competitiv
Slide 16: Nine-month and quarterly category growth
Nine-month and quarterly category growth 9M-24 Q2-24 Q3-24 9M-24 OG (%) Q2-24 and Q3-24 OG (%) 2.8 Group 2.0 1.9 4.1 Powdered & Liquid Beverages 3.0 3.3 3.3 PetCare 3.0 1.3 0.9 Nutrition and Health Science 2.1 4.8 0.4 Prepared dishes & cooking aids -1.6 -0.9 0.5 Milk products and Ice Cream -0.7 -2.1
Slide 17: Revised 2024 guidance
Revised 2024 guidance • Organic sales growth expected to be around 2% • Underlying trading operating profit margin expected to be around 17.0% • Underlying earnings per share growth in constant currency expected to be broadly flat 17 October 17, 2024 Nestlé nine-month sales 2024
Slide 18: Nine-month sales 2024 - Laurent Freixe, CEO
Nine-month sales 2024 Laurent Freixe, CEO
Slide 19: Focus areas in first weeks as CEO
Focus areas in first weeks as CEO Intensive Sharpening Actions engagement with strategy and already stakeholders action plan underway 19 October 17, 2024 Nestlé nine-month sales 2024
Slide 20: Intensive engagement with stakeholders
Intensive engagement with stakeholders Internal • Top-to-bottom colleague engagement • Market and business reviews • Strategy development with leadership teams External • Consumers, customers and partners • Political leaders and social partners 20 October 17, 2024 Nestlé nine-month sales 2024
Slide 21: Powerful combination of strengths
Powerful combination of strengths Strengths • Passionate people with long-term perspective • Portfolio of iconic brands, globally and locally • Leading category positions and products • Unrivalled geographic coverage and scale • Deep consumer penetration • Powerful innovation ecosystem • Leadership
Slide 22: Multiple opportunities ahead
Multiple opportunities ahead Opportunities • Connectivity with consumers and customers • Focusing innovation – fewer, bigger, better • Executing more consistently • Restoring investment, funded by efficiencies • Digitalizing real-time end-to-end • Further embedding sustainability • Rebuilding confid
Slide 23: Actions already to drive performance and transformation
Actions already to drive performance and transformation • Created alignment to accelerate performance and transform for the future • Launched productivity initiatives to support increased investment • Announced new organizational structure to increase agility and accountability 23 October 17, 2024 N
Slide 24: Organizational changes to support our strategy
Organizational changes to support our strategy Key changes • Zone structure revised from 5 to 3 zones; all Zone heads located in Vevey • Both GMB heads on Executive Board, reporting to CEO • Coffee brands structure simplified, reducing duplication • Digitalization and Sustainability leads to report
Slide 25: Key takeaways
Key takeaways Organic growth was 2.0% for the first nine months and 1.9% in the third quarter • RIG impacted by softening consumer demand and retailer inventory reductions in the third quarter • Pricing normalizing Full-year 2024 guidance revised • Organic sales growth around 2.0%, underlying tradin
Slide 26: Supporting slides
Supporting slides 26 October 17, 2024 Nestlé nine-month sales 2024
Slide 27: Q3-2024 Operating segments – topline summary
Q3-2024 Operating segments – topline summary Q3-2024 sales Sales RIG Pricing OG (CHF m) % % % Zone North America 6 291 0.3 -1.1 -0.8 Zone Europe 4 617 -0.3 1.4 1.1 Zone AOA 4 100 2.4 1.3 3.7 Zone Latin America 2 748 -2.2 2.5 0.3 Zone Greater China 1 110 6.3 -1.8 4.5 Nestlé Health Science 1 676 9.8 1
Slide 28: Q3-2024 Products – topline summary
Q3-2024 Products – topline summary Q3-2024 sales Sales RIG Pricing OG (CHF m) % % % Powdered and liquid beverages 5 911 2.0 1.3 3.3 Water 853 -0.7 1.9 1.1 Milk products and Ice cream 2 460 -0.9 -1.2 -2.1 Nutrition and Health Science 3 677 3.7 1.1 4.8 Prepared dishes and cooking aids 2 564 -0.5 -0.4
Slide 29: 9M-2024 Operating segments – topline summary
9M-2024 Operating segments – topline summary 9M-2024 sales Reported Sales RIG Pricing OG Net M&A F/X sales growth (CHF m) % % % % % % Zone North America 18 524 -0.9 0.6 -0.3 0.0 -2.3 -2.6 Zone Europe 13 900 0.8 2.5 3.3 -2.2 -2.9 -1.8 Zone AOA 12 542 0.8 2.8 3.6 0.0 -8.7 -5.2 Zone Latin America 8 913
Slide 30: 9M-2024 Products – topline summary
9M-2024 Products – topline summary 9M-2024 sales Sales RIG Pricing OG (CHF m) % % % Powdered and liquid beverages 17 952 1.3 1.7 3.0 Water 2 474 -0.8 3.7 3.0 Milk products and Ice cream 7 648 -0.8 0.1 -0.7 Nutrition and Health Science 11 313 0.8 1.3 2.1 Prepared dishes and cooking aids 7 826 -2.2 0.
Slide 31: Q3-2024 historical eight quarters
Q3-2024 historical eight quarters Period RIG% Pricing % OG % Q4-2022 -2.6 10.1 7.5 Q1-2023 -0.5 9.8 9.3 Q2-2023 -1.1 9.1 8.0 Q3-2023 -0.3 6.3 6.0 Q4-2023 0.4 5.2 5.7 Q1-2024 -2.0 3.4 1.4 Q2-2024 2.2 0.6 2.8 Q3-2024 1.3 0.6 1.9 31 October 17, 2024 Nestlé nine-month sales 2024
Slide 32: Continued growth across developed and emerging markets
Continued growth across developed and emerging markets Developed Emerging Sales (in CHF) 39.4 bn 27.7 bn % of Group sales 59% 41% RIG 0.4% 0.6% Pricing 0.7% 2.9% OG 1.1% 3.5% 32 October 17, 2024 Nestlé nine-month sales 2024
Slide 33: 9M-2024 Currency overview
9M-2024 Currency overview Average rate 9M-2023 9M-2024 Variation in % US Dollar 1 USD 0.902 0.881 -2.3% Euro 1 EUR 0.978 0.958 -2.0% Chinese Yuan Renminbi 100 CNY 12.866 12.245 -4.8% Brazilian Real 100 BRL 18.014 16.834 -6.6% Philippine Peso 100 PHP 1.625 1.547 -4.8% UK Pound Sterling 1 GBP 1.122 1.
Slide 34: Abbreviations
Abbreviations • OG Organic sales growth • RIG Real internal growth • AOA Zone Asia, Oceania and Africa • LATAM Zone Latin America • GC Zone Greater China 34 October 17, 2024 Nestlé nine-month sales 2024