Nestlé posts six-month results revealing continued challenges, yet organic growth returns
pic: Nestle
Nestlé has posted its latest half-year results, with group sales at CHF 45 billion, down 2.7% and net profits flat year-on-year at CHF 5.6 billion, as global challenges within wider industry supply chains remain, writes Neill Barston.
As the company noted, confectionery performed in positive territory, with single digit growth for the flagship KitKat brand, and other regional products performing solidly for the business around the world.
Moreover, the Swiss-headquartered company recorded organic growth of 2.1% for the first half of its financial year, which the company has hailed as a positive sign that conditions are emerging from a challenging period of trading.
This has seen significant impact on its operations, including elevated prices for key ingredients including cocoa and sugar, that has seen higher retail prices emerge in a number of markets to counter sourcing cost rises.
As previously reported by Confectionery Production, the results offer an improved picture from earlier this year, in which growth performance was down 2% across the group in the first quarter of 2024., with North America being hit notably hard, with its results down 5.8% for the region.
Its health sciences and dairy markets had reportedly experienced negative growth for the period, amid a period of notable trading disruption and uncertainty across the food and drink industry, with Nestlé’s prices also rising 3.3% during the first quarter.
Speaking on the latest set of results, Mark Schneider, Nestlé CEO, commented: “Positive real internal growth is back. We delivered improved volume and mix growth across the Group in the second quarter. Nestlé Health Science is recovering as planned and is set for a strong second half. Looking ahead to the remainder of the year, we will continue to drive RIG by launching innovations that address consumer trends and growing our large iconic brands. At the same time, we have seen pricing come down faster than expected. Therefore, we consider it prudent to adjust our guidance for the year, with organic sales growth now expected to be at least 3%.”
