Slide 1: Three-month sales 2024 Investor call
2024 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
2024 Three-month sales Mark Schneider, CEO
Slide 4: Key messages
Key messages • Organic sales growth of 1.4% reflects: – Pricing moderating to 3.4%, following a high base of comparison in 2023 – RIG of -2.0%, impacted by soft consumer demand, particularly in North America • Growth led by PetCare and confectionery; U.S. frozen food main drag • Integration plan for
Slide 5: Three-month sales – Anna Manz, CFO
2024 Three-month sales Anna Manz, CFO
Slide 6: Three-month sales growth
Three-month sales growth OG +1.4% -0.6% +3.4% -2.0% -6.7% 23.5 Reported sales growth -5.9% 22.1 -30 3M-2023 sales RIG Pricing Net M&A Foreign 3M-2024 sales CHF bn exchange CHF bn 6 April 25, 2024 Nestlé three-month sales 2024
Slide 7: Zone North America
Zone North America Sales CHF 5.8 bn Real internal growth -5.8% Pricing 3.3% Organic growth -2.5% • Main negative was frozen food impacted by soft consumer demand in the U.S. • Main growth contributors were Purina PetCare, water, and coffee; delivering mid-single digit organic growth 7 April 25, 2024
Slide 8: Zone Europe
Zone Europe Sales CHF 4.6 bn Real internal growth -0.2% Pricing 4.6% Organic growth 4.4% • Broad-based growth across geographies • Purina PetCare, coffee and confectionery were the key growth contributors 8 April 25, 2024 Nestlé three-month sales 2024
Slide 9: Zone Asia, Oceania and Africa
Zone Asia, Oceania and Africa Sales CHF 4.2 bn Real internal growth -0.4% Pricing 4.1% Organic growth 3.6% • Central and West Africa, the Philippines and India were the main geographic growth drivers • Growth was driven by infant nutrition, culinary and coffee, particularly for affordable offerings
Slide 10: Zone Latin America
Zone Latin America Sales CHF 3.1 bn Real internal growth -0.8% Pricing 3.9% Organic growth 3.1% • Continued strong growth in Brazil • Confectionery, with robust demand for Garoto and KitKat, and Nestlé Professional were key growth drivers 10 April 25, 2024 Nestlé three-month sales 2024
Slide 11: Zone Greater China
Zone Greater China Sales CHF 1.2 bn Real internal growth 2.1% Pricing 1.5% Organic growth 3.7% • Growth driven by out-of-home and e-commerce channels • Confectionery, Nestlé Professional and coffee were the key growth contributors 11 April 25, 2024 Nestlé three-month sales 2024
Slide 12: Nestlé Health Science
Nestlé Health Science Sales CHF 1.5 bn Real internal growth -3.6% Pricing 1.9% Organic growth -1.8% • Vitamins, minerals and supplements posted negative growth due to temporary supply constraints • Medical Nutrition delivered robust growth across most segments 12 April 25, 2024 Nestlé three-month sa
Slide 13: Nespresso
Nespresso Sales CHF 1.5 bn Real internal growth -0.2% Pricing 1.2% Organic growth 1.0% • Vertuo continued to see broad-based momentum • Mid-single digit growth in North America, more than offset slightly negative growth in Europe 13 April 25, 2024 Nestlé three-month sales 2024
Slide 14: Category growth
Category growth Organic sales growth % 6.3% 4.3% 4.3% 1.6% 1.4% 0.7% -0.6% -4.2% Total Group Powdered and PetCare Nutrition and Prepared dishes Milk products Confectionery Water Liquid Beverages Health Science and cooking aids and Ice cream 14 April 25, 2024 Nestlé three-month sales 2024
Slide 15: Group RIG evolution
Group RIG evolution Key factors in Q1-24 0.4% • Zone North America frozen food: -0.3% – U.S. frozen pizza and snacks impacted by soft -0.5% consumer demand and intense price competition -1.1% – Winding down of Canada frozen meals -2.0% • Temporary supply constraint in VMS -2.6% • One less trading da
Slide 16: Drivers of RIG rebound in 2024
Drivers of RIG rebound in 2024 • North America moves beyond specific frozen food challenges • Lap the reduction of the Supplemental Nutrition Assistance Program benefits in the U.S. • Increase in marketing and promotional activity, particularly for Billionaire brands • Re-ignition of vitamins, miner
Slide 17: 2024 guidance confirmed
2024 guidance confirmed • 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% 17 April 25, 2024 Nestlé three-month sales 2024
Slide 18: Three-month sales – Mark Schneider, CEO
2024 Three-month sales Mark Schneider, CEO
Slide 19: Zone North America set to return to growth
Zone North America set to return to growth Portfolio substantially Superior sales growth Q1-24 RIG headwinds transformed and margin performance Rebound underway Organic sales growth CAGR (2019 - 2023) Headwinds Nutrition 7.6% • Bifurcation of consumer demand Confectionery • Increased price-elasticit
Slide 20: Nestlé Health Science: VMS integration plan on track
Nestlé Health Science: VMS integration plan on track Customer service improving; Full innovation roster across vitamins, minerals and on track for return to normal levels in H2-24 supplements brands, strong focus on new segments 100% 75% 50% 25% 0% Q2-23 Q3-23 Q4-23 Q1-24 Category growth has returne
Slide 21: Fueling growth through innovation
Fueling growth through innovation Capturing cold coffee Driving Purina One Reinvigorating U.S. Scaling Maggi into new Expanding our HMO* opportunities with growth through new frozen meals business food platforms and portfolio with next Nescafé and Starbucks microbiome solutions with new formats segm
Slide 22: Fueling Billionaire brand growth via increased marketing investment
Fueling Billionaire brand growth via increased marketing investment Organic growth Marketing investment * Global campaigns Market share* Q1-24 delivery Increasing share of total Increasing share of total Improving trend 2X +18% Group vs. Q1-23 Mid-50s average * % year-on-year increase in CHF * Busin
Slide 23: Key takeaway slide
Key takeaway slide • Organic sales growth of 1.4%, largely impacted by North America • Focus on driving growth of our Billionaire brands through innovation and marketing investments • Integration plan for vitamins, minerals and supplements business on track • RIG set to rebound strongly in the secon
Slide 24: Three-month sales – Q&A
2024 Three-month sales Q&A
Slide 25: 3M-2024 Operating segments – topline summary
3M-2024 Operating segments – topline summary 3M-2024 sales Reported Sales RIG Pricing OG Net M&A F/X sales growth (CHF m) % % % % % % Zone North America 5 823 -5.8 3.3 -2.5 0.1 -5.3 -7.7 Zone Europe 4 642 -0.2 4.6 4.4 -3.6 -5.8 -5.0 Zone AOA 4 240 -0.4 4.1 3.6 -0.1 -13.0 -9.4 Zone Latin America 3 07
Slide 26: 3M-2024 Products – topline summary
3M-2024 Products – topline summary 3M-2024 sales Sales RIG Pricing OG (CHF m) % % % Powdered and liquid beverages 5 847 -1.4 3.0 1.6 Water 701 -1.6 5.9 4.3 Milk products and Ice cream 2 605 -2.3 1.7 -0.6 Nutrition and Health Science 3 680 -2.5 3.2 0.7 Prepared dishes and cooking aids 2 626 -6.5 2.3
Slide 27: 3M-2024 historical eight quarters
3M-2024 historical eight quarters Period RIG% Pricing % OG % 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 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 27 April 25, 2024 Nestlé three-month sales 2024
Slide 28: 3M-2024 developed and emerging market growth
3M-2024 developed and emerging market growth Developed Emerging Sales (in CHF) 12.6 bn 9.5 bn % of Group sales 57% 43% RIG -3.3% -0.1% Pricing 2.9% 4.2% OG -0.4% 4.1% 28 April 25, 2024 Nestlé three-month sales 2024
Slide 29: 3M-2024 currency overview
3M-2024 currency overview Weighted average rate 3M-2023 3M-2024 Variation in % US Dollar 1 USD 0.925 0.874 -5.5 Euro 1 EUR 0.993 0.949 -4.4 Chinese Yuan Renminbi 100 CNY 13.522 12.160 -10.1 Brazilian Real 100 BRL 17.796 17.655 -0.8 Philippine Peso 100 PHP 1.687 1.562 -7.4 UK Pound Sterling 1 GBP 1.1
Slide 30: Abbreviations
Abbreviations • OG Organic growth • RIG Real internal growth • AOA Asia, Oceania and Africa • LATAM Latin America • GC Greater China 30 April 25, 2024 Nestlé three-month sales 2024