Slide 1: Full-year results 2024
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: Strategic progress: Driving performance and transformation
Strategic progress Laurent Freixe, CEO Driving performance and transformation Laurent Freixe, CEO
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 expectations
2024 results in line with latest expectations 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: 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 7: 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 and premium beverages reorganized • Digital and sustainability elevated • Cascaded the execution plans • Operational Master
Slide 8: 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 8 February 13, 2025 Full-year results 2024
Slide 9: '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 10: 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 10 February 13, 2025 Full-year results 2024
Slide 11: 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 12: 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 13: 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 14: 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 15: Key takeaways
Key takeaways Creating ‘Fuel for Growth’ Investing to accelerate performance Organization aligned Move EB here Moving fast to change Nestlé 15 February 13, 2025 Full-year results 2024
Slide 16: 2024 financial review
2024 financial review Anna Manz, CFO
Slide 17: 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 17 February 13, 2025 Full-year results 2024
Slide 18: 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 18 February 13,
Slide 19: 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 20: 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 21: 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 22: 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 23: Thank you!
Thank you! BANE Nestlé Good food, Good life