Investor Presentaiton
Nestlé 2023 Half-Year Results
Thursday 27th July 2023
temporary increase in the prior year linked to supply chain constraints. We expect this level to
decrease at a faster pace in the second half of the year.
Slide: Underlying earnings per share
Moving to underlying earnings per share, which increased by 11.1% in constant currency and
by 4.1% on a reported basis to CHF 2.43. The improvement was driven by strong organic
growth and an increase in the underlying trading profit margin. Nestlé's share buyback program
also contributed 1.4%, net of finance costs. These increases were partly offset by the negative
effect of exchange rates and higher financing costs.
Slide: Q&A
Let me now hand over to Luca, who will monitor the Q&A.
Q & A Session
Luca Borlini, Nestlé S.A, Head of Investor Relations:
Thank you, François. With that, we move to the Q&A session. We open the lines for
questions from financial analysts. (Operator Instructions)
The first question comes from Warren Ackerman at Barclays.
Questions on:
Gross margin
Coffee margin
Warren Ackerman, Barclays:
The first one is just around margins. I think François you said gross margin will be materially
up in H2. Can you define materially, maybe the moving parts? And within that, what was the
COGS inflation in H1 and your expectations for H2? And maybe any comments around wage
inflation as well, just for us to understand the scope of the gross margin, which you need to be
able to fund the reinvestment. That's the first one.
Then the second one is just a bit more on Coffee because Coffee was one of the only
categories where margins were down. So I'm just interested to know what your expectations
are in the back half, around margin. Then in terms of the operating dynamics, are you able to
help us on a few of the elements in Coffee? What was the Starbucks growth? And maybe a
little bit on what's happening to the Nespresso compatible capsule market in terms of
competition and your market share?
François-Xavier Roger, Nestlé SA, Chief Financial Officer:
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