Nestlé has released its Half-Year Report, including financial results that show slower growth in APAC, compared to its other operating zones.
The company’s overall organic growth reached 8.1 per cent with coffee being the largest growth contributor, fuelled by demand for the three main brands Nescafé, Nespresso, and Starbucks.
Purina PetCare saw double-digit growth led by science-based and premium brands Purina Pro Plan, Purina ONE and Felix.
Prepared dishes and cooking aids posted high single-digit growth, based on strong demand for Maggi and Stouffer’s. Vegetarian and plant-based food offerings continued to see strong double-digit growth, led by Garden Gourmet.
Dairy reported high single-digit growth, led by fortified milks, coffee creamers and ice cream. Confectionery recorded double-digit growth, supported by a strong sales development in impulse products.
In the Asia, Oceania, and sub-Saharan Africa (AOA) region, Nestlé saw organic growth of 6.8 per cent with total reported sales of CHF10.2 billion. This was lower than the growth seen in its other regions of Americas (AMS), which saw 7.6 per cent organic growth and total sales of CHF16.2 billion; and Europe, Middle East and North Africa (EMENA), which saw 7.3 per cent organic growth and total sales of CHF10.2 billion.
In AOA, most categories gained market share, particularly pet food, coffee, confectionery, and culinary.
Greater China, Philippines, and India reported the highest sales in the region, followed by Japan, Australia, and the rest of AOA.
Mark Schneider, Nestlé CEO, said: “I would like to thank the Nestlé team for their continued commitment to meeting consumer needs and their relentless focus on execution. Organic growth was strong across most geographies and categories, with robust momentum in retail sales and a return to growth in out-of-home channels.
“Through fast-paced innovation, strong brand support, increased digitalization and stringent portfolio management we have built the foundation for delivering consistent mid single-digit organic growth for years to come.
“Nestlé continues to invest for future profitable growth. We are creating a global leader in vitamins, minerals and supplements with the acquisition of The Bountiful Company’s core brands. The expansion of our partnership with Starbucks into ready-to-drink coffee will open new opportunities in a fast-growing segment. Our portfolio choices, strong execution and decisive actions on sustainability enable us to create value for all stakeholders.”