Investor Presentaiton
Nestlé 2023 Half-Year Results
Thursday 27th July 2023
developments. Growth was also supported by pricing, continued e-commerce momentum and
innovation.
Nutrition and Health Science posted 7.4% growth. Infant Nutrition reported 10.4% organic
growth, with broad-based contributions across geographies, segments and key brands. Sales
of human milk oligosaccharide products grew at a mid-teen rate, reaching around CHF 700
million in the first half. We have already discussed Nestlé Health Science.
Prepared dishes and cooking aids saw 5.8% growth, driven by Maggi which reported close to
double-digit growth. Plant-based food posted low single-digit growth, following the impact of
portfolio optimization. While there has been some growth moderation for plant-based products
recently, we see that as temporary. We remain positive on long-term category trends and
expect the plant-based market to evolve and rebound.
Milk products and Ice cream recorded 7.5% growth. The key contributors to growth were
Coffee creamers, affordable fortified milks and Dairy culinary solutions. Ice cream grew at a
mid single-digit rate, led by Häagen-Dazs in Canada and KitKat ice cream sticks in South-East
Asia.
Growth in Confectionery was 10.8%, reflecting strong broad-based demand for KitKat and
positive sales developments for key local brands, including Garoto in Brazil, Munch in South
Asia and Shark Wafer in China.
Sales in Water grew by 4.2%, despite temporary capacity constraints and a high base of
comparison in 2022. S. Pellegrino and Acqua Panna saw strong demand, particularly for out-
of-home channels. We continue our modernization efforts at our Perrier site and expect a
normalization of supply by the end of the year.
Slide: Underlying trading operating profit margin by category
Moving now to profit margin by product category. Most categories saw a margin improvement
as pricing, cost efficiencies and portfolio optimization helped to offset input cost inflation
received over the last two years.
Margins within the Powdered and liquid beverages category decreased by 250 basis points
mainly due to significant cost inflation in Coffee.
PetCare margins increased by 190 basis points, driven by growth leverage, lower distribution
costs and improved mix, which more than offset increased advertising and marketing
expenses.
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