Press Release: Nestle: Nestlé reports nine-month -3-

The key growth contributor was the Vertuo system, which continued to see broad-based momentum. Growth in out-of-home channels was also strong, with further adoption of the Momento system, particularly in the office segment. Innovation continued to resonate with consumers, following the launch of home compostable coffee capsules in France and Switzerland.

By geography, North America posted double-digit growth, with continued market share gains. Europe reported positive growth. Other regions combined saw low single-digit growth.

Business as a force for good: Creating economic opportunities for the world's youth

Nestlé celebrates the tenth anniversary of Nestlé Needs YOUth this year. The company launched this initiative at a time when youth unemployment in Europe was at a record high. The goal was to help young people all over the continent improve their employability and obtain employment. Since then, the program has scaled to a global scope.

Nestlé helps youth become more employable by offering traineeships and apprenticeships. Last year alone, the company provided nearly 11 500 such opportunities. Nestlé also offers online training, career guidance, mentorships and networking opportunities. Well over one million people took part in digital events in 2022. While many trainees and apprentices take a permanent position with Nestlé, the goal of the program is to equip them with skills that can help them secure a job anywhere.

Employability remains a key pillar of the program today, but Nestlé has also expanded it to include two additional dimensions: agripreneurship and entrepreneurship. Supporting young farmers and entrepreneurs all over the world is in line with the company's objectives to advance regenerative agriculture and to develop innovative products and services.

With the average age of farmers now well into the 50s in many parts of the world, Nestlé is also striving to make farming more attractive to young people. Encouraging them to pursue a livelihood in farming is an opportunity to embed regenerative agriculture methods, which are key to helping address climate change. Through Nestlé's Agripreneurship Program, young farmers learn how to run their farms as businesses from which they can make a decent living. Nestlé provides them with access to training courses that include regenerative farming topics like agroforestry, soil health and animal welfare. In 2022, more than 5 000 young farmers participated in the program.

The ability to sustainably feed the world's growing population will be determined not only by today's young farmers but also by today's young innovators. Many of them have ideas in line with Nestlé's priorities -- be they related to regenerative agriculture, plant-based products, sustainable packaging solutions, or nutrition. Through Nestlé's Youth Entrepreneurship Platform https://www.globenewswire.com/Tracker?data=50kZ3wwS9oh9g8tvyk-ioPUcUj85IiJxM72E8HRcy4aUeJ-oPKUIHFYoXoqF7G93dshSLaWy0leeMgMTtCENvvRIaGrrEAWG_0-LDUL5yaYglCR-CfIuTxdNCae7cFalaqwuP_OoLHjg2Mwy5P6sjA==, the company empowers young people to learn, develop new skills, test ideas and turn concepts into viable business projects. It connects them to like-minded individuals and provides them with access to experts, equipment and R&D labs.

Nestlé endeavors to scale this important work to have a greater impact. That's why it founded the Global Alliance for YOUth https://www.globenewswire.com/Tracker?data=p8auhhqxXLfQB45WSG0YTbL1UmQy6A3d91Cdlg7tll3qDlAayyahME8G4HA37Rvqij_45FgM2p4ZX6siynw1qTwJTxYczD0fVsdMQRCFbd5F_YnGJLlGJPaxPjft1MOn and brought together 24 other like-minded companies that also provide training and first job opportunities to young people. It has additionally partnered with UNESCO to help young people in Latin America achieve positive social impact in their communities, and it continuously looks for new opportunities to support more of the world's youth.

Outlook

Full-year 2023 outlook confirmed: we expect organic sales growth between 7% and 8% and underlying trading operating profit margin between 17.0% and 17.5%. Underlying earnings per share in constant currency is expected to increase between 6% and 10%.

Annex

Nine-month sales overview by operating segment

Zone Zone Zone Nestlé

Total North Zone Zone Latin Greater Health Other

Group America Europe AOA America China Science Nespresso Businesses

Sales

9M-2023

(CHF m) 68 829 19 027 14 144 13 223 9 139 3 624 4 850 4 617 205

Sales

9M-2022

(CHF m) 69 132 19 093 13 968 13 899 8 648 3 843 4 811 4 674 196

Real

internal

growth

(RIG) - 0.6% - 0.9% -2.3% 0.0% - 0.6% 2.3% - 1.9% 1.6% 8.3%

Pricing 8.4% 8.9% 11.1% 8.6% 10.5% 2.6% 4.4% 3.5% 1.5%

Organic

growth 7.8% 8.0% 8.8% 8.6% 10.0% 4.9% 2.5% 5.2% 9.8%

Net M&A - 0.8% - 2.2% - 2.4% - 0.1% 0.0% 0.1% 3.8% - 0.6% 0.0%

Foreign

exchange - 7.4% - 6.1% - 5.2% - 13.3% - 4.3% - 10.6% - 5.9% - 5.7% - 5.1%

Reported

sales

growth - 0.4% - 0.3% 1.3% - 4.8% 5.7% - 5.7% 0.5% - 1.2% 4.7%

Nine-month sales overview by product

Milk Prepared

Powdered products Nutrition dishes &

Total & liquid & ice & Health cooking

Group beverages Water cream Science aids Confec-tionery PetCare

Sales

9M-2023

(CHF m) 68 829 18 257 2 606 8 100 11 470 8 649 5 735 14 012

Sales

9M-2022

(CHF m) 69 132 18 461 2 776 8 267 11 625 9 152 5 640 13 211

Real

internal

growth

(RIG) - 0.6% - 0.3% - 6.9% - 3.0% - 0.8% - 3.2% 2.2% 2.6%

Pricing 8.4% 7.0% 10.4% 9.6% 7.1% 8.5% 7.9% 10.4%

Organic

growth 7.8% 6.7% 3.5% 6.6% 6.3% 5.3% 10.1% 13.1%

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com https://www.globenewswire.com/Tracker?data=06m7Z7u9LCepF2L8UL7HUhYOeNtbEb9x1d6NA7sH3NB55wX6lRpwtX2C3EjQVhj0jIFXHYgOxSWL8FhFPYCJCpaHY1WrW5t3xQ4YdWOB-Cr5xWSqyCnmNq412wW_U4wr

Investors:

Luca Borlini Tel.: +41 21 924 3509

ir@nestle.com https://www.globenewswire.com/Tracker?data=M3ekwHOH6hlFxBQcC7NdovbU8awfZicCeEbQv2khkaE8V9Pmbw5McftyaOL9fFeFp57dbVO8eWug5UerKyMcGQ==

(END) Dow Jones Newswires

October 19, 2023 01:15 ET (05:15 GMT)