Nestle has reported an organic growth of 8.1%, with real internal growth (RIG) of 1.7% and pricing of 6.5%. The growth was broad-based across most geographies and categories, with increased pricing and resilient RIG.
Total reported sales increased by 9.2% to CHF 45.6 billion (6M-2021: CHF 41.8 billion). Net acquisitions had a positive impact of 1.0%.
Mark Schneider, Nestle CEO said, “In the first half of the year, we delivered strong organic growth and a significant increase in underlying earnings per share. Our local teams implemented price increases in a responsible manner. Volume and product mix were resilient, based on our strong brands, differentiated offerings and leading market positions.”
“We limited the impact of unprecedented inflationary pressures and supply chain constraints on our margin development through disciplined cost control and operational efficiencies. At the same time, investments behind capital expenditure, digitalisation and sustainability increased significantly,” added Schneider.
Organic growth in Zone AOA accelerated to a high single-digit rate, driven by increased pricing, a further recovery of out-of-home channels and strong supply chain execution. The Zone saw market share gains across categories, particularly in culinary, portioned and ready-to-drink coffee as well as dairy.
The underlying trading operating profit margin decreased by 90 basis points to 23.5%. Africa was close to a double-digit rate, based on strong momentum for affordable offerings in Central and West Africa.
The press release received by Packaging MEA stated, “We are focused on creating shared value over both the short and long term. Growing food insecurity around the world and heightened climate concerns, following an increase in unusual weather patterns, underlines the importance of this strategic direction. Good for you and good for the planet are the two key strategic pillars that our company pursues in an unwavering manner, even in the face of significant short-term challenges.”