Slide 1: Full-year results 2024
SANE SN Nestlé Good food, Good life Full-year results 2024
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 Key messages 2024 financial review Strategic progress 2025 financial guidance Key takeaways 3 February 13, 2025 Full-year results 2024
Slide 4: Delivery on track, moving fast
Delivery on track, moving fast 2024 in line with latest guidance 2025 guidance unchanged vs outlook Increasing investment - ‘Fuel for Growth’ Teams aligned, execution underway 4 February 13, 2025 Full-year results 2024
Slide 5: 2024 results in line with latest guidance
2024 results in line with latest guidance Organic growth UTOP margin Underlying EPS growth Free cash flow (CHF) in constant currency +2.2% 17.2% +2.5% 10.7 bn 5 February 13, 2025 Full-year results 2024
Slide 6: 2024 financial review
2024 financial review Anna Manz, CFO
Slide 7: Resilient organic growth, with return to positive RIG
Resilient organic growth, with return to positive RIG OG +2.2% -0.3 1.5 93.0 0.8 -3.7 91.4 Reported sales growth -1.8% FY-2023 Sales RIG Pricing Net M&A Foreign FY-2024 Sales CHF bn exchange CHF bn 7 February 13, 2025 Full-year results 2024
Slide 8: Key factors shaping organic growth in 2024
Key factors shaping organic growth in 2024 2.2% 0.8% • Soft consumer demand • Consumer hesitancy towards global brands in certain markets 1.5% • Actions to reduce customer inventory levels • Pricing deceleration and normalization of promotional environment Organic growth RIG Pricing 8 February 13, 2
Slide 9: Quarterly evolution of organic growth reflects phasing of key factors
Quarterly evolution of organic growth reflects phasing of key factors OG RIG RIG adjusted for the number of trading days Pricing Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 9 February 13, 2025 Full-year results 2024
Slide 10: UTOP margin -10 bps on a reported basis and flat in constant currency
UTOP margin -10 bps on a reported basis and flat in constant currency Flat -40 bps +80 bps -50 bps 17.3% 17.2% Underlying TOP Gross profit Distribution Advertising Administration, Underlying TOP margin FY-2023 margin & marketing other marketing, margin FY-2024 R&D, other 10 February 13, 2025 Full-ye
Slide 11: Gross profit margin in H2-24 impacted by cocoa and coffee
Gross profit margin in H2-24 impacted by cocoa and coffee Gross profit margin 47.2% 46.7% 46.3% 46.1% 45.9% 45.6% H1-23 H2-23 H1-24 H2-24 FY-23 FY-24 11 February 13, 2025 Full-year results 2024
Slide 12: Marketing investments stepped up, with increased focus on digital
Marketing investments stepped up, with increased focus on digital Advertising and marketing expenses,% of sales 8.2% 8.1% 8.2% 8.1% 7.7% 7.1% H1-23 H2-23 H1-24 H2-24 FY-23 FY-24 12 February 13, 2025 Full-year results 2024
Slide 13: UTOP margin impacted by input costs and growth investments
UTOP margin impacted by input costs and growth investments UTOP margin 17.4% 17.4% 17.3% 17.1% 17.2% 17.0% H1-23 H2-23 H1-24 H2-24 FY-23 FY-24 13 February 13, 2025 Full-year results 2024
Slide 14: Zone and GMB performance overview (1/2)
Zone and GMB performance overview (1/2) Group Zone North America Zone Europe Zone AOA Organic growth 2.2% -0.5% 3.3% 3.4% Real internal growth 0.8% -0.8% 0.8% 0.6% Pricing 1.5% 0.4% 2.5% 2.8% UTOP margin 17.2% 22.3% 16.9% 23.3% vs. LY -10 bps +10 bps +50 bps -20 bps OG by quarter 4.4% 4.5% 3.6% 3.7%
Slide 15: Zone and GMB performance overview (2/2)
Zone and GMB performance overview (2/2) Zone Latam Zone Greater China Nestlé Health Science Nespresso Organic growth 2.5% 2.1% 6.2% 2.2% Real internal growth -0.3% 4.3% 5.5% 1.6% Pricing 2.7% -2.1% 0.7% 0.6% UTOP margin 20.4% 16.1% 14.0% 20.0% vs. LY -30 bps -40 bps +200 bps -30 bps OG by quarter 4.
Slide 16: Category performance overview
Category performance overview OG RIG Pricing xx bps change vs. FY-23 FY-24 OG (%) FY-24 UTOP margin (%) Group 2.2% 17.2% -10 Powdered & Liquid Beverages 3.3% 20.0% -70 PetCare 2.7% 21.6% +90 Nutrition and Health Science 2.8% 19.9% +140 Prepared dishes & cooking aids -1.7% 19.9% +160 Milk products an
Slide 17: Net profit impacted by lower restructuring and higher taxes
Net profit impacted by lower restructuring and higher taxes % of sales FY-24 vs FY-23 Underlying trading operating profit 17.2% -10 bps Restructuring +50 bps Impairment of assets flat Onerous contracts, litigations and other trading income/expenses flat Trading operating profit 16.0% +40 bps Gain/lo
Slide 18: Underlying EPS +2.5% in constant currency, -0.8% on reported basis
Underlying EPS +2.5% in constant currency, -0.8% on reported basis CHF 4.92 +1.1% 0.05 0.04 -0.9% +0.7% 0.03 +1.6% 0.08 -3.3% 0.16 CHF 4.80 CHF 4.77 UEPS FY-2023 Operating Share buyback Net finance Others* UEPS FY-2024 FX impact UEPS FY-2024 performance cost & tax in constant currency *Others includ
Slide 19: Working capital and Capex both reducing
Working capital and Capex both reducing Working capital, % of sales Capex*, % of sales Calculated on a 5-quarter average 6.1% 6.0% 3.7% 3.2% 2.8% 1.3% Jun-23 Dec-23 Jun-24 Dec-24 2023 2024 *additions of owned PP&E 19 February 13, 2025 Full-year results 2024
Slide 20: Strong free cash flow generation
Strong free cash flow generation In CHF billion 10.7 10.4 +0.4 -0.6 +0.4 9.8 +0.1 +0.2 -0.2 Free cash One-off Free cash Adjusted Working Capex and Tax Other Free cash flow FY-2023 proceed from flow FY-2023 EBITDA capital expenditure flow FY-2024 Prometheus adjusted on intangible shares assets dispos
Slide 21: Net debt impacted by share buyback and FX
Net debt impacted by share buyback and FX In CHF billion CHF 12.2 bn returned to shareholders in 2024 -1.5 -3.3 +10.7 -7.8 -56.0 -49.6 -4.5 Net debt increased by CHF 6.4 bn Net debt Share Dividends M&A* FX & Free Net debt Jan 1, 2024 buyback other cash flow Dec 31, 2024 2.54x 2.90x Net debt/ Net deb
Slide 22: Return on invested capital improved slightly
Return on invested capital improved slightly After goodwill and intangible assets 14.7% 14.1% 13.9% 12.1% 12.2% 12.2% 12.3% 9.1% 2017* 2018 2019 2020 2021 2022 2023 2024 *Restated to reflect implementation of IFRS 15 and IFRS 16 in 2017 22 February 13, 2025 Full-year results 2024
Slide 23: Strategic progress
Strategic progress Laurent Freixe, CEO
Slide 24: Clear action plan to drive performance and transformation
Clear action plan to drive performance and transformation Drive Unlock Strengthen operational full portfolio foundations excellence potential • Sharpen value propositions • Expand winners • Engage our people • Focus our innovation • Build new growth engines • Digitalize end-to-end • Step up investme
Slide 25: Setting the direction and aligning the organization to deliver
Setting the direction and aligning the organization to deliver • Updated strategy • Organizational changes implemented • Zone structure and reporting lines simplified • Waters & premium beverages reorganized • Digital & sustainability elevated • Cascaded the execution plans • Operational Master Plan
Slide 26: Nestlé Virtuous Circle is our framework
Nestlé Virtuous Circle is our framework Efficiency & productivity Investment & growth Shared value creation NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value 26 February 13, 2025 Full-year results 2024
Slide 27: New approaches to unlock new opportunities
New approaches to unlock new opportunities • Comprehensive and end-to-end • Coordinated, structured, group-wide • Data-led, digitally-enabled, deploying AI 27 February 13, 2025 Full-year results 2024
Slide 28: 'Fuel for Growth', CHF 2.5bn savings by 2027
‘Fuel for Growth’, CHF 2.5bn savings by 2027, with early savings in 2025 to support investment Sources of savings, % Phasing of savings, CHF bn Procurement Operational efficiency Commercial investments Non-recurring Recurring 2.5 2.3 2.5 1.4 CHF bn 0.7 Cost to achieve savings • Procurement & commerc
Slide 29: Multiple savings opportunities identified
Multiple savings opportunities identified Procurement • Spend consolidation & aggregation • AI-powered procurement and supplier management • e-sourcing expansion and automation Operational efficiency • Manufacturing and logistics • Operating model Commercial investments • Promotions, price, assortme
Slide 30: Investing to accelerate category growth and improve market share trends
Investing to accelerate category growth and improve market share trends • Expand winners • Scale big bets • Build new growth platforms • Address underperformers 30 February 13, 2025 Full-year results 2024
Slide 31: Addressing underperformers: 18 key cells accounting for 21% of sales
Addressing underperformers: 18 key cells accounting for 21% of sales drive most of the market share loss Status for 18 key underperformers Examples of Winning value proposition before corrective actions improvement Irresistible product superiority Wyeth – Greater China Unbeatable value Frozen pizza
Slide 32: Coffee – strengthening our leadership position
Coffee – strengthening our leadership position Category growth (2025-27) Progress on Nestlé’s growth drivers • 3-5% p.a. Expand winners • RTD: expanding Nescafé and Starbucks, adding new markets in 2025-26 • Out-of-home: new machines, developing key accounts Category growth drivers • Premiumization
Slide 33: PetCare – scope for substantial growth
PetCare – scope for substantial growth Category growth (2025-27) Progress on Nestlé’s growth drivers • 4-5% p.a. Expand winners • PetCare AOA: adding field resources, increasing marketing investments • Therapeutics: new innovation, developing the veterinary channel Category growth drivers • Premiumi
Slide 34: Nutrition and Nestlé Health Science – capturing opportunities
Nutrition and Nestlé Health Science – capturing opportunities Category growth (2025-27) Progress on Nestlé’s growth drivers • 2-3% p.a. early childhood Scale big bets New market launches 2024 2025 2026 • 5% p.a. VMS • Sinergity 15 10+ 10+ • 6% p.a. medical nutrition • 7% p.a. active nutrition Addres
Slide 35: Leading in creating shared value
Leading in creating shared value 20% net reduction in greenhouse gas emissions one year ahead of plan 21% of ingredients from regenerative agriculture practices one year ahead of plan 47% female managers within the scope of middle to senior management ~132 bn servings of affordable nutrition micronu
Slide 36: 2025 financial review
2025 financial review Anna Manz, CFO
Slide 37: Implications for key financial expectations in 2025
Implications for key financial expectations in 2025 • Gross profit margin: below 2024 • Advertising and marketing expenses: reaching 9% sales by end 2025 • ‘Fuel for Growth’ savings: CHF 0.7 billion in 2025 • Working capital: continues to improve, at a lower rate than in 2024 • Capex % of sales: low
Slide 38: Guidance
Guidance 2024 2025 Medium-term actual Guidance* guidance Organic 2.2% 4%+ Improving sales growth in normal compared to 2024 market conditions At or above 16% Underlying trading 17.2% as we invest 17.0%+ operating profit margin for growth *guidance assumes no significant change in key macroeconomic v
Slide 39: Key messages
Key messages Laurent Freixe, CEO
Slide 40: Key takeaways
Key takeaways Creating ‘Fuel for Growth’ Investing to accelerate performance Organization aligned Move EB here Moving fast to change Nestlé 40 February 13, 2025 Full-year results 2024
Slide 41: Supporting slides
Supporting slides
Slide 42: Volume, mix & price
Volume, mix & price 7.7% 2.0% 8.6% 1.4% 0.6% 0.5% 0.5% Price 1.8% 2.2% 1.4% 3.7% 1.5% Mix 2.6% 1.5% 1.6% Volume 1.1% 1.3% 1.1% -0.7% -1.7% -2.5% 2018 2019 2020 2021 2022 2023 2024 Notes: Excludes Water, Nestlé Health Science, Volume + Mix are equivalent to RIG 42 February 13, 2025 Full-year results
Slide 43: Growth across developed and emerging markets
Growth across developed and emerging markets Developed Emerging Sales (in CHF) 54.5 bn 36.9 bn % of Group sales 60% 40% RIG 0.7% 0.8% Pricing 0.5% 2.9% OG 1.2% 3.7% 43 February 13, 2025 Full-year results 2024
Slide 44: Q4-2024 Operating segments – topline summary
Q4-2024 Operating segments – topline summary Q4-2024 sales Sales RIG Pricing OG (CHF m) % % % Zone North America 6 812 -0.7 -0.1 -0.8 Zone Europe 5 010 0.9 2.3 3.2 Zone AOA 4 251 0.3 2.7 3.0 Zone Latin America 3 020 0.9 3.4 4.3 Zone Greater China 1 423 5.2 -3.9 1.2 Nestlé Health Science 1 824 13.2 0
Slide 45: Q4-2024 Products – topline summary
Q4-2024 Products – topline summary Q4-2024 sales Sales RIG Pricing OG (CHF m) % % % Powdered and Liquid Beverages 6 646 2.5 1.6 4.1 Water 706 -1.6 1.3 -0.3 Milk products and Ice cream 2 749 -0.4 -0.1 -0.4 Nutrition and Health Science 3 824 5.3 -0.3 5.0 Prepared dishes and cooking aids 2 885 -2.2 0.3
Slide 46: FY-2024 Operating segments – topline summary
FY-2024 Operating segments – topline summary FY-2024 sales Reported Sales RIG Pricing OG Net M&A FX sales growth (CHF m) % % % % % % Zone North America 25 336 -0.8 0.4 -0.5 -0.1 -2.0 -2.5 Zone Europe 18 910 0.8 2.5 3.3 -1.9 -2.5 -1.0 Zone AOA 16 793 0.6 2.8 3.4 0.0 -7.5 -4.1 Zone Latin America 11 93
Slide 47: FY-2024 Products – topline summary
FY-2024 Products – topline summary FY-2024 sales Sales RIG Pricing OG (CHF m) % % % Powdered and Liquid Beverages 24 598 1.6 1.7 3.3 Water 3 180 -1.0 3.2 2.3 Milk products and Ice cream 10 397 -0.7 0.1 -0.6 Nutrition and Health Science 15 137 1.9 0.9 2.8 Prepared dishes and cooking aids 10 711 -2.2
Slide 48: FY-2024 historical eight quarters
FY-2024 historical eight quarters Period RIG% Pricing % OG % 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 Q4-2024 1.5 1.2 2.7 48 February 13, 2025 Full-year results 2024
Slide 49: FY-2024 Operating segments – sales and profit
FY-2024 Operating segments – sales and profit In CHF m Of which impairment Underlying Trading Net other of property, Of which Depreciation Trading Operating Operating trading income/ plant and restructuring and Sales Profit Profit (expense) equipment costs amortization Zone North America 25 336 5 64
Slide 50: FY-2024 Products – sales and profit
FY-2024 Products – sales and profit In CHF m Of which Underlying Net other impairment Trading Trading trading of property, Of which Operating Operating income/ plant and restructuring Sales Profit Profit (expense) equipment costs Powdered and Liquid Beverages 24 598 4 920 4 499 (421) (285) (71) Wate
Slide 51: FY-2024 EPS reconciliation (1 of 2)
FY-2024 EPS reconciliation (1 of 2) From net profit to underlying net profit In CHF m FY-2023 FY-2024 Net Profit 11 209 10 884 Restructuring costs 723 311 Impairments of property, plant & equipment, goodwill and int. assets 647 579 Net result on disposal of businesses 221 62 Other adjustment in Net
Slide 52: FY-2024 EPS reconciliation (2 of 2)
FY-2024 EPS reconciliation (2 of 2) From underlying trading operating profit to underlying net profit In CHF m FY-2023 FY-2024 Underlying trading operating profit 16 053 15 704 Net financial income / (expense) (1 360) (1 485) Adjusted taxes (3 113) (3 107) Adjusted income from associates and joint v
Slide 53: FY-2024 Currency overview
FY-2024 Currency overview Average rate Variation in FY-2023 FY-2024 % US Dollar 1 USD 0.898 0.880 -1.9% Euro 1 EUR 0.971 0.952 -2.0% Chinese Yuan Renminbi 100 CNY 12.689 12.234 -3.6% Brazilian Real 100 BRL 17.989 16.351 -9.1% Philippine Peso 100 PHP 1.614 1.537 -4.8% UK Pound Sterling 1 GBP 1.116 1.
Slide 54: Abbreviations
Abbreviations • OG Organic growth • RIG Real internal growth • AOA Zone Asia, Oceania, and Africa • LATAM Zone Latin America • GC Zone Greater China • EPS Earnings per share • COGS Cost of goods sold • FCF Free cash flow • TOP Trading operating profit • UTOP Underlying trading operating profit • Adj