Purina PetCare was the largest contributor to organic growth in Nestlé’s 2023 half-yearly results, with strong momentum for both wet and dry offerings.
Purina One, Purina Pro Plan, and Friskies all recorded double-digit growth on a global scale. In the Zone Asia, Oceania, and Africa (AOA), Purina PetCare posted high single-digit growth, with infant nutrition being the largest growth contributor in this zone.
Total reported sales increased by 1.6 per cent to CHF 46.3 billion (AUD $ 79.8 billion) and underlying earnings per share increased by 11.1 per cent in constant currency and increased 4.1 per cent on a reported basis to CHF 2.43 (AUD $4.19).
Mark Schneider, CEO of Nestlé, said they pursued their strategic priorities with discipline and focus in a fast-evolving consumer environment.
“Based on the strong performance in the first half of the year we upgrade our organic sales growth outlook for 2023. At-home consumption post-COVID has now normalized, removing a growth drag on some of our categories. Out-of-home channels continue to see strong growth momentum.”
Looking at the remainder of the year, Schneider said they are confident they will deliver a positive combination of volume and mix, and improvement in gross margin, and a significant increase in marketing investments.
“Combined with ongoing portfolio management and optimization as well as the continued implementation of our sustainability initiatives, we are well positioned to grow and to generate value for our stakeholders.”
For the full-year 2023 outlook, Nestlé are increasing its organic sales growth guidance to a range of 7 to 8 per cent. The underlying trading operating profit margin is expected to be between 17 per cent and 17.5 per cent. Underlying earnings per share in constant currency is expected to increase between 6 per cent and 10 per cent.
To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.