NESTLÉ S.A. This press release is also available in Français (pdf) https://www.globenewswire.com/Tracker?data=TENvRf-xx7ghrhLlHlayci_O5lokAcAtv5eimHFGTQsYuvRb_k68JDhRHQagoOQiIYDgB4vAKuYza1LOwpTRloFuuVQnalICm-k557CsLVwmfbALg4KYz-km2ZKx5BM9uggDNrlH7ifksArZP9aQ315YA0w6ZddZAWGscdjYNQgSTZ1Sg-hTZoUCXA04S7v8 and Deutsch (pdf) https://www.globenewswire.com/Tracker?data=PwpcsBuM3AzwojGdTnfxhHzz-Z8zzFUP9NrONiJYNJx2XF0N_wZSFkY8ymyUumPGVHqhEy7-E-ImVFAL-uInrQNRHwHNqsEkM4Uic0pAGyuF29hw14xIBcufwx2Ob__eghwYyPCLc5NwJpE_963dlCIMx7nQVNuqYfDmJDp5fOnCcbtFzRIHK6WoloUttqje Follow today's event live 14:00 CEST Investor call audio webcast https://www.globenewswire.com/Tracker?data=-eysfnBM1aKAqBilqkazpB6JeUBd7Pkvs1zv9GiQkFB7FjdQdX5v4BTsRvT_VGyxPRI2xNV1Po00JoDdXPAIeyxuePWcpkrL_rAILp-oOexJy5-f3zGw0wijdKcrYnRPFuCUxmLP8SQObEFM8RjYvk_Lip7KdG3iKVeXoIhNbEo= Full details on our website https://www.globenewswire.com/Tracker?data=nAK5yYrUuNbbcy9cRkGS06q5swIIhYKAoh6tvcHZglFwv661UQxEBu0sg_8IlQDvl3V6RqJILV5cnt2J2m4yz4VCawH2UzIlSAW0M7ntb_BtDUnRXfQPvJN_jDnUXr12uta34z3sUNTaYvmOByn0iw== ............. Vevey, April 22, 2021 Nestlé reports three-month sales for 2021 -- Organic growth reached 7.7%, with real internal growth (RIG) of 6.4% and pricing of 1.2%. Growth was broad-based across most geographies, supported by early signs of recovery from out-of-home channels, improved pricing and market share gains. -- Foreign exchange reduced sales by 5.3% due to the continued appreciation of the Swiss franc against most currencies. Net divestitures had a negative impact of 1.0%. As a result, total reported sales increased by 1.3% to CHF 21.1 billion (3M-2020: CHF 20.8 billion). -- Portfolio management on track. The sale of Nestlé's regional spring water brands, purified water business and beverage delivery service in the U.S. and Canada was completed on March 31, 2021. The acquisition of Essentia Water was completed on March 5, 2021. -- Full-year 2021 outlook confirmed: continued increase in organic sales growth towards a mid single-digit rate. Underlying trading operating profit margin with continued moderate improvement. Underlying earnings per share in constant currency and capital efficiency expected to increase. Mark Schneider, Nestlé CEO, commented: ""We are pleased with Nestlé's strong organic sales growth in the first quarter, building on broad-based contributions from most geographies and product categories. Our growth was fueled by disciplined execution, enhanced digital capabilities and rapid innovation, resulting in further market share gains. Retail sales saw solid growth and out-of-home channels saw signs of improvement. We confirm our guidance for the year and our mid-term outlook for sustained mid single-digit organic growth. The development of COVID-19 vaccines has given the world hope and we are supporting the broad and equitable delivery of vaccines in the communities where we operate. Our partnership with the International Federation of the Red Cross and Red Crescent Societies is helping to get vaccines to those who need them most. In these challenging times, we can truly demonstrate how business can act as a force for good and help accelerate the recovery." Nestlé Total Zone Zone Zone Health Other Group AMS EMENA AOA Nespresso Science Businesses Sales 3M-2021 (CHF m) 21 089 8 244 5 203 5 094 1 571 930 47 Sales 3M-2020 (CHF m)* 20 812 8 347 5 313 4 974 1 359 765 54 Real internal growth RIG 6.4% 4.8% 3.8% 8.8% 16.3% 9.4% - 11.1% Pricing 1.2% 2.4% 0.6% 0.3% 0.8% 0.1% 0.3% Organic growth 7.7% 7.2% 4.4% 9.1% 17.1% 9.5% - 10.8% Net M&A - 1.0% 0.3% - 3.7% - 3.4% - 0.1% 17.3% 0.0% Foreign exchange - 5.3% - 8.6% - 2.8% - 3.4% - 1.4% - 5.2% - 2.3% Reported sales growth 1.3% - 1.2% - 2.1% 2.3% 15.6% 21.6% - 13.2% * 2020 figures restated following the disclosure of Nestlé Health Science and Nespresso as standalone segments from 2021 onwards (previously combined and presented in Other Businesses). Group sales Organic growth reached 7.7%, with RIG of 6.4%. Pricing increased to 1.2%, reflecting input cost inflation. Growth was broad-based across most geographies. Organic growth was 5.0% in developed markets, based mostly on RIG. Pricing was positive. Growth in emerging markets was 11.4%, with strong RIG and positive pricing. Most product categories delivered strong organic growth. Coffee was the largest contributor to growth, fueled by strong demand for Nespresso, Nescafé and Starbucks products. Dairy grew at a double-digit rate, based on elevated demand for home-baking products and fortified milks. Purina PetCare saw high single-digit growth, led by its science-based and premium brands Purina Pro Plan, Purina ONE and Felix. Prepared dishes and cooking aids posted broad-based double-digit growth, with robust momentum across most brands. Vegetarian and plant-based food offerings continued to see strong double-digit growth, led by Garden Gourmet. Confectionery grew at a double-digit rate, supported by improved growth in impulse and gifting products as well as sustained momentum in home-baking products. Nestlé Health Science reported high single-digit growth, reflecting increased demand for vitamins, minerals and supplements and healthy-aging products. Infant Nutrition saw a sales decrease. A return to positive growth in China was more than offset by sales declines in other markets, due to consumer stockpiling in March last year and lower birth rates in the context of the pandemic. Water recorded negative growth due to its high exposure to out-of-home channels. By channel, retail sales posted high single-digit organic growth, reflecting continued strong demand for at-home consumption. Sales declines in out-of-home channels moderated, with a return to positive growth in AOA. E-commerce sales grew by 39.6%, reaching 14.5% of total Group sales. Most categories saw strong momentum, particularly coffee, Purina PetCare and culinary. Net divestitures decreased sales by 1.0%, largely related to the divestment of the Herta charcuterie business and the Yinlu peanut milk and canned rice porridge businesses. Foreign exchange reduced sales by 5.3%, reflecting the appreciation of the Swiss franc versus most currencies, particularly in emerging markets. Total reported sales increased by 1.3% to CHF 21.1 billion. Portfolio Management On March 5, 2021, Nestlé completed the acquisition of Essentia Water, a premium functional water brand in the U.S. On March 31, 2021, Nestlé completed the sale of its regional spring water brands, purified water business and beverage delivery service in the U.S. and Canada to One Rock Capital Partners, in partnership with Metropoulos & Co. for USD 4.3 billion. Zone Americas (AMS) -- 7.2% organic growth: 4.8% RIG; 2.4% pricing. -- North America posted mid single-digit organic growth, with strong RIG and positive pricing. -- Latin America reached double-digit organic growth, with positive RIG and pricing. Sales Sales Organic Net Foreign Reported 3M-2021 3M-2020 RIG Pricing growth M&A exchange growth Zone CHF 8.2 CHF 8.3 AMS bn bn 4.8% 2.4% 7.2% 0.3% - 8.6% - 1.2% Organic growth was 7.2%, with strong RIG of 4.8%. Pricing contributed 2.4%, improving in both North and Latin America. Net acquisitions increased sales by 0.3%. The acquisitions of Freshly and Essentia Water more than offset the divestiture of the U.S. ice cream business. Foreign exchange had a negative impact of 8.6%, reflecting broad-based currency depreciations against the Swiss franc, particularly in Latin America. Reported sales in Zone AMS decreased by 1.2% to CHF 8.2 billion. Zone AMS reported high single-digit organic growth, with a high base of comparison in 2020. The Zone saw broad-based market share gains, led by pet food, coffee, dairy and Infant Nutrition. North America recorded mid single-digit growth, with strong RIG in most product categories and positive pricing. Frozen and chilled food was the largest growth contributor, supported by Stouffer's, Lean Cuisine and the recently launched Life Cuisine. The newly acquired Freshly business posted strong growth, helped by expanded distribution. The beverages category grew at a double-digit rate, with strong demand for Starbucks at-home products, Coffee mate and Nescafé. Purina PetCare delivered mid single-digit growth, with strong momentum in e-commerce and premium brands Purina Pro Plan, Purina ONE and Fancy Feast. Merrick recorded strong growth, supported by new product launches in Healthy Grains. Home-baking products, including Toll House and Carnation, saw positive growth. Sales of ice cream and confectionery in Canada grew at a double-digit rate, driven by Häagen-Dazs and KitKat. Water and Nestlé Professional reported negative growth, with sales declines moderating. Latin America reached double-digit growth, with both strong RIG and pricing across geographies and most product categories. Sales in Brazil grew at a double-digit rate, with strong growth in confectionery, dairy and coffee. Mexico also reported broad-based double-digit growth, reflecting high demand for Nescafé and home-baking brands, La Lechera and Abuelita. Sales in Chile grew at a double-digit rate, led by
(MORE TO FOLLOW) Dow Jones Newswires
April 22, 2021 01:15 ET (05:15 GMT)
