Press Release: Nestle: Nestlé reports nine-month sales for 2020

This press release is also available in Français (pdf)

https://www.globenewswire.com/Tracker?data=IqdGg6EjNwZ8PAbren0b03veInmP6i5d7kiGo0Jcw3mXCCnsY3Y2bWAsQ4wTAEJUENWMmjC5R9ceWJ9PVxnoDOZsu7MJRigEUeWYpzWBKjRYlfgOLw5jTAB7f0Loi35iXpv9qk4W40k_7x7K_GHaYPtwgdsK8F8OrLVBGmWICwQMfWBC-TWSXETX0YlAAc3R

and Deutsch (pdf)

https://www.globenewswire.com/Tracker?data=eWpytXpnBBa9cRVE1y9pw3uZ7km_0-fARqL4Tw_x_oGESVdch_DBrmd9wRTnfSvNHhyY9preAozTXn-YvgNLCaSn58-GlWrTxU8b_usQBHMS1DQSndMlvXFXfuprU7_wx6bO2NK64wKhdUa9VuVNbg7RnE0I0ZJNf-s1U3vPVPCCuhWYpFIHvbW1Uli19xsE

Follow today's event live

14:00 CEST Investor call audio webcast

https://www.globenewswire.com/Tracker?data=ypFYdu1Spa1cT8P7iuuL8VHPTt9O86cXGzfMfw8a-xzxc7b8rtAk5aFZ_6WLsfcshbKk58tYLq1A08N_wnRM12txyGIIFoK4zYZ-4-HbGivUnT5FUWPUQ5FQPOw0R6e82mL1PzOgZ4HTjy7hrCdG-ECKtl42-hJPS5dMVyP0i6I=

Full details in Events

https://www.globenewswire.com/Tracker?data=cPBJBj_g4Qme49QVX8P9mrFN_qSM_2HB2gJGqqhtykDmiG1MNPAiEJ5aU6W-660GbBnJsMDyeU9fanxw_GQHF2L7jA63W1-_vceXQBCWxzzt8nuWZInHnBh4-dHUm3lzQSF2YdtdStxslm3rvv4cqA==

.............

Vevey, October 21, 2020

Nestlé reports nine-month sales for 2020

-- Organic growth reached 3.5%, with real internal growth (RIG) of 3.3% and

pricing of 0.2%. Growth was supported by continued strong momentum in the

Americas, Purina PetCare and Nestlé Health Science. Zone AOA reached

4.5% organic growth in the third quarter.

-- Divestitures and foreign exchange reduced sales by 12.9%. Total reported

sales decreased by 9.4% to CHF 61.9 billion (9M-2019: CHF 68.4 billion).

-- Nestlé's current strategic reviews are fully on track. Further

progress in portfolio management was made. The acquisition of Aimmune

Therapeutics was completed on October 13, 2020.

-- Full-year guidance for 2020 updated: We expect full-year organic sales

growth around 3%. The underlying trading operating profit margin is

expected to improve. Underlying earnings per share in constant currency

and capital efficiency are expected to increase.

Mark Schneider, Nestlé CEO, commented:"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."

Other

Total Group Zone AMS Zone EMENA Zone AOA Businesses

Sales 9M-2020

(CHF m) 61 912 24 991 14 952 15 251 6 718

Sales 9M-2019

(CHF m)* 68 367 27 608 15 732 16 340 8 687

Real internal

growth (RIG) 3.3% 4.7% 3.3% - 0.2% 6.8%

Pricing 0.2% 0.4% - 0.4% 0.2% 0.6%

Organic growth 3.5% 5.1% 2.9% 0.0% 7.4%

Net M&A - 5.5% - 5.7% - 1.7% 0.0% - 24.0%

Foreign exchange - 7.4% - 8.9% - 6.2% - 6.7% - 6.1%

Reported sales

growth - 9.4% - 9.5% - 5.0% - 6.7% - 22.7%

* 2019 figures restated following the decision to integrate the

Nestlé Waters business into the Group's three geographical Zones,

effective January 1, 2020.

Group sales

Organic growth reached 3.5%, with RIG of 3.3%. Pricing contributed 0.2%.

Organic growth improved to 4.9% in the third quarter.

Growth was based on sustained momentum in the Americas and continued

robust sales development in EMENA. Growth in AOA was slightly positive.

Organic growth was 3.9% in developed markets, based entirely on RIG.

Growth in emerging markets improved to 2.8%, supported by both RIG and

pricing.

By product category, the largest contributor to growth was Purina

PetCare and its science-based and premium brands Purina Pro Plan, Purina

ONE and Felix. Dairy grew at a high single-digit rate, based on

increased demand for fortified milks and home-baking products. Coffee

posted mid single-digit growth, fueled by strong consumer demand for

Starbucks products, Nespresso and Nescafé. Prepared dishes and

cooking aids reached mid single-digit growth. Vegetarian and plant-based

food products delivered strong double-digit growth, supported by new

product launches and continued distribution expansion. Nestlé

Health Science posted double-digit growth, reflecting increased consumer

demand for products that support health and the immune system.

Confectionery and water reported a sales decrease due to their high

exposure to out-of-home channels, with some improvement in the third

quarter.

Divestitures decreased sales by 5.5%, largely related to the divestment

of Nestlé Skin Health and the U.S. ice cream business. Foreign

exchange reduced sales by 7.4%, reflecting the continued appreciation of

the Swiss franc versus most currencies. Total reported sales decreased

by 9.4% to CHF 61.9 billion.

Business impact of COVID-19

The effects of COVID-19 on organic growth continued to vary, in

particular by product category and sales channel.

-- Product categories: Demand for at-home consumption, trusted brands and

products with health benefits remained strong. Purina PetCare, dairy,

coffee at-home and Nestlé Health Science continued to report strong

growth. Confectionery and water posted sales decreases, reflecting their

high exposure to out-of-home channels and on-the-go consumption.

-- Sales channels: Retail sales accelerated materially, reflecting continued

elevated demand for at-home consumption. Growth in out-of-home channels

remained significantly negative, with sales declines moderating in the

third quarter. E-commerce sales grew by 47.6%, reaching 12.3% of total

Group sales. Coffee, Purina PetCare and Nutrition & Health Science were

the main growth contributors, with continued strong momentum in all other

categories.

Portfolio Management

The strategic reviews for parts of the Waters business in North America

and the Yinlu peanut milk and canned rice porridge businesses in China

are fully on track. Both reviews are expected to be completed in early

2021.

Nestlé Health Science continues to build its presence and

leadership in the field of nutritional science. In July, Nestlé

completed the acquisition of a majority stake in Vital Proteins,

America's leading collagen products brand. In September, Nestlé

closed the acquisition of IM HealthScience, which specializes in medical

foods and dietary supplements. On October 13, 2020, Nestlé

completed the acquisition of Aimmune Therapeutics, a biopharmaceutical

company developing and commercializing treatments for potentially

life-threatening food allergies.

Zone Americas (AMS)

-- 5.1% organic growth: 4.7% RIG; 0.4% pricing.

-- North America maintained mid single-digit organic growth, with strong RIG

and negative pricing.

-- Latin America reached high single-digit organic growth, with positive RIG

and pricing.

Sales Sales Organic Net Foreign Reported

9M-2020 9M-2019 RIG Pricing growth M&A exchange growth

Zone CHF 25.0 CHF 27.6

AMS bn bn 4.7% 0.4% 5.1% - 5.7% - 8.9% - 9.5%

Organic growth was 5.1%, supported by robust RIG of 4.7%. Pricing

increased to 0.4%. Divestitures reduced sales by 5.7%, largely related

to the divestment of the U.S. ice cream business. Foreign exchange had a

negative impact of 8.9%, reflecting broad-based currency depreciations

against the Swiss franc, particularly in Latin America. Reported sales

in Zone AMS decreased by 9.5% to CHF 25.0 billion.

North America maintained a mid single-digit growth rate, with strong RIG

in most product categories. The largest growth contributor was Purina

PetCare, with sustained momentum in e-commerce and premium brands.

Purina Pro Plan, Purina ONE, veterinary products and supplements all

grew at a double-digit rate. The beverages category posted double-digit

growth, with strong demand for Starbucks at-home products, Coffee mate

and Nescafé. Frozen food reported high single-digit growth,

supported by DiGiorno and Stouffer's. Lean Cuisine returned to positive

growth in the third quarter, supported by innovations and the successful

launch of Life Cuisine. Home-baking products, including Toll House and

Carnation, grew at a strong double-digit rate. Water reported a sales

decrease. Growth recovered to almost flat in the third quarter, led by

S.Pellegrino and Perrier. Nestlé Professional saw negative growth,

with some improvement in the third quarter.

Latin America reached high single-digit growth, with broad-based

contributions across geographies and most product categories. Brazil saw

double-digit growth. Most brands contributed strongly, particularly

Ninho, NAN and Nescafé. Chile continued to see high single-digit

growth, led by dairy and ice cream. Mexico reached mid single-digit

growth in the third quarter, supported by La Lechera and Nescafé.

By product category, the key growth platforms were dairy, Purina PetCare,

(MORE TO FOLLOW) Dow Jones Newswires

October 21, 2020 01:15 ET (05:15 GMT)