Nestlé records organic growth for its nine-month results, despite reduced confectionery sales
pic: Nestle
The Swiss-headquartered Nestlé group recorded 3.5% organic growth for its nine-month financial results, despite its confectionery division suffering a fall in sales amid the closure of retail outlets during the coronavirus pandemic, reports Neill Barston
According to the company, its overall positive momentum was based on sustained performance in the Americas and continued robust sales development in EMENA, recording increased demand for home baking products, as well as a notable contributions from its dairy, coffee and pet care interests.
Sales for the nine-months of the financial year stood at CHF 61. 9 billion, down 9% year-on-year, amid what CEO Mark Schneider described as a ‘difficult and volatile environment’ as sectors around the world continue to trade amid the backdrop of the ongoing covid-19 situation.
Confectionery accounted for sales of CHF 4.7 billion for the period, down year-on-year from CHF 5.3 billion, with the company retaining a number of global household brands including KitKat, Smarties, Milkybar, Quality Street, as well as Garoto in Brazil.
One of the core focuses for the business this has been in seeking to make packaging sustainable while maintaining food safety and quality. Significantly, it has committed to making 100% of its packaging recyclable or reusable by 2025, as well as reducing use of virgin plastics by one-third in the same period. The company reported that 87% of its total packaging and 66% of plastic packaging is presently recyclable or reusable.
CEO Mark Schneider said: “Nestlé has remained resilient in a difficult and volatile environment. Our people have acted in a responsible and prompt manner to mitigate the impact of the global pandemic and have adapted quickly to evolving consumer needs. Strong organic growth was broad based and supported by sustained momentum in the Americas, Purina PetCare and Nestlé Health Science, as well as the acceleration of our coffee business in the third quarter.
“We continue to develop our portfolio with speed and discipline. As an example, we are transforming Nestlé Health Science into a nutrition and health powerhouse through a combination of strong organic growth and targeted acquisitions. The recent additions of Zenpep, Vital Proteins and Aimmune Therapeutics are further steps in the expansion of our nutritional health offerings.”
