Nestle S.a. · SIX:NESN
Nestle — Q1 2023 Earnings Presentation
26 slides from Nestle's earnings presentation, Apr 25, 2023
Slide 1: Three-month sales Investor call
2023 Three-month sales 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: Three-month sales – Mark Schneider, CEO
2023 Three-month sales Mark Schneider, CEO
Slide 4: Key messages
Key messages • Strong broad-based organic sales growth of 9.3% – Pricing of 9.8%, reflecting significant cost inflation – RIG of -0.5%, impacted by capacity constraints and portfolio optimization, with limited demand elasticity • RIG improvement vs. Q4-2022, particularly for Zone North America and Z
Slide 5: Creation of joint venture with PAI Partners for frozen pizza in Europe
Creation of joint venture with PAI Partners for frozen pizza in Europe • Creates a dedicated frozen pizza player in a competitive and dynamic category • Proven track record of Froneri joint venture with PAI Partners • Key facts – Sales: CHF ~400 m in 2022 – Key brands: Wagner, Buitoni and Garden Gou
Slide 6: Material progress on packaging in 2022
Material progress on packaging in 2022 Transforming packaging footprint through redesign • Eliminated 200 000 tonnes in product packaging • Cut number of packaging pieces by 14 billion • Reduced greenhouse gas emissions by 280 000 tonnes Driving next-generation solutions • Reuse and refill pilots: 2
Slide 7: 2023 guidance confirmed
2023 guidance confirmed • Organic sales growth of 6-8% • Underlying trading operating profit margin between 17.0% and 17.5% • Underlying earnings per share in constant currency and capital efficiency expected to increase 7 April 25, 2023 Nestlé three-month sales 2023
Slide 8: Three-month sales – François-Xavier Roger, CFO
2023 Three-month sales François-Xavier Roger, CFO
Slide 9: Three-month sales growth
Three-month sales growth OG +9.3% +0.3% -4.0% +9.8% 23.5 -0.5% 22.2 Reported sales growth +5.6% -30 3M-2022 sales RIG Pricing Net M&A Foreign 3M-2023 sales CHF bn exchange CHF bn 9 April 25, 2023 Nestlé three-month sales 2023
Slide 10: Strong growth across developed and emerging markets
Strong growth across developed and emerging markets Developed Emerging Sales (in CHF) 13.5 bn 10.0 bn % of Group sales 57% 43% RIG -1.0% 0.3% Pricing 9.7% 10.0% OG 8.6% 10.3% 10 April 25, 2023 Nestlé three-month sales 2023
Slide 11: Improved RIG in Q1-2023 versus Q4-2022
Improved RIG in Q1-2023 versus Q4-2022 2.4% 0.9% -0.2% -0.5% -2.6% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 11 April 25, 2023 Nestlé three-month sales 2023
Slide 12: Zone North America
Zone North America Sales CHF 6.3 bn Real internal growth -0.8% Pricing 12.4% Organic growth 11.6% • Strong organic growth, driven by pricing. RIG recovering strongly versus Q4-22 • E-commerce momentum and recovery of out-of-home channels supported growth • Purina PetCare, coffee creamers and frozen
Slide 13: Zone Europe
Zone Europe Sales CHF 4.9 bn Real internal growth -1.0% Pricing 10.7% Organic growth 9.7% • Strong organic growth led by pricing • Growth supported by e-commerce momentum and out- of-home channels • Purina PetCare, confectionery and coffee were the main growth contributors 13 April 25, 2023 Nestlé t
Slide 14: Zone Asia, Oceania and Africa
Zone Asia, Oceania and Africa Sales CHF 4.7 bn Real internal growth 1.3% Pricing 9.1% Organic growth 10.4% • Strong organic growth, supported by pricing and resilient RIG • Improved mix and continued momentum of out-of-home channels supported growth • Infant nutrition, culinary and coffee were the k
Slide 15: Zone Latin America
Zone Latin America Sales CHF 3.0 bn Real internal growth -0.6% Pricing 13.4% Organic growth 12.8% • Sustained double-digit organic growth based on pricing • Growth supported by strong operational execution and continued momentum of out-of-home channels • Confectionery, dairy and infant nutrition wer
Slide 16: Zone Greater China
Zone Greater China Sales CHF 1.3 bn Real internal growth -0.8% Pricing 3.9% Organic growth 3.1% • Positive organic growth, RIG partly impacted by the timing of Chinese New Year • Strong operational execution, robust e-commerce momentum and continued innovation supported growth • Infant nutrition and
Slide 17: Nestlé Health Science
Nestlé Health Science Sales CHF 1.6 bn Real internal growth -2.2% Pricing 5.0% Organic growth 2.8% • Positive organic growth, with market share gains. RIG remains impacted by high base of comparison • Consumer Care saw negative growth, with a sales decrease in VMS and positive growth in active nutri
Slide 18: Nespresso
Nespresso Sales CHF 1.6 bn Real internal growth -1.1% Pricing 4.0% Organic growth 2.9% • Organic growth driven by pricing. RIG impacted by post- pandemic normalization • Vertuo, strong demand in out-of-home channels and innovation supported growth • North America posted double-digit growth. Europe r
Slide 19: Broad-based growth across categories
Broad-based growth across categories Organic sales growth % 15.7% 13.5% 9.3% 8.2% 8.1% 7.2% 6.8% 3.1% Total Group Powdered and PetCare Nutrition and Prepared dishes Milk products Confectionery Water Liquid Beverages Health Science and cooking aids and Ice cream 19 April 25, 2023 Nestlé three-month s
Slide 20: Three-month sales – Q&A
2023 Three-month sales Q&A
Slide 21: Supporting slides
Supporting slides 21 April 25, 2023 Nestlé three-month sales 2023
Slide 22: 3M-2023 Operating segments – topline summary
3M-2023 Operating segments – topline summary 3M-2023 sales Reported Sales RIG Pricing OG Net M&A F/X sales growth (CHF m) % % % % % % Zone North America 6 312 -0.8 12.4 11.6 -2.3 -0.4 8.9 Zone Europe 4 881 -1.0 10.7 9.7 1.1 -5.4 5.4 Zone AOA 4 681 1.3 9.1 10.4 -0.1 -9.2 1.1 Zone Latin America 3 032
Slide 23: 3M-2023 Products – topline summary
3M-2023 Products – topline summary 3M-2023 sales Sales RIG Pricing OG (CHF m) % % % Powdered and liquid beverages 6 223 -1.1 8.3 7.2 Water 761 -7.3 10.5 3.1 Milk products and Ice cream 2 800 -3.7 11.8 8.1 Nutrition and Health Science 3 880 0.3 7.9 8.2 Prepared dishes and cooking aids 3 107 -4.3 11.1
Slide 24: 3M-2023 historical eight quarters
3M-2023 historical eight quarters Period RIG% Pricing % OG % Q2-2021 7.3 1.3 8.6 Q3-2021 4.4 2.1 6.5 Q4-2021 4.0 3.1 7.2 Q1-2022 2.4 5.2 7.6 Q2-2022 0.9 7.7 8.7 Q3-2022 -0.2 9.5 9.3 Q4-2022 -2.6 10.1 7.5 Q1-2023 -0.5 9.8 9.3 24 April 25, 2023 Nestlé three-month sales 2023
Slide 25: 3M-2023 currency overview
3M-2023 currency overview Weighted average rate 3M-2022 3M-2023 Variation in % US Dollar 1 USD 0.924 0.925 0.1 Euro 1 EUR 1.036 0.993 -4.2 Chinese Yuan Renminbi 100 CNY 14.538 13.522 -7.0 Brazilian Real 100 BRL 17.780 17.796 0.1 Philippine Peso 100 PHP 1.792 1.687 -5.9 UK Pound Sterling 1 GBP 1.239
Slide 26: Abbreviations
Abbreviations • OG Organic growth • RIG Real internal growth • AOA Asia, Oceania and Africa • LATAM Latin America • GC Greater China 26 April 25, 2023 Nestlé three-month sales 2023