Press Release: Nestle: Nestlé reports three-month -2-

Zone Europe reported high single-digit organic growth, supported by higher pricing, sustained e-commerce momentum and a further recovery in out-of-home channels. The Zone continued to see market share gains, particularly in pet food, coffee and plant-based food.

By product category, the key growth driver was Nestlé Professional, with sales exceeding 2019 levels. Sales in Purina PetCare grew at a double-digit rate, driven by premium brands Purina ONE, Purina Pro Plan and Gourmet as well as veterinary products. Tails.com and Lily's Kitchen also saw strong momentum, supported by continued distribution expansion. Sales in Infant Nutrition grew at a double-digit rate, helped by market share gains. Water posted double-digit growth, led by S.Pellegrino. Confectionery reported mid single-digit growth, with a strong recovery for KitKat and gifting products. Growth in coffee was almost flat, following strong double-digit growth in the first quarter of 2021. Starbucks products and Nescafé Farmers Origins, a new range of coffee capsules for Nespresso machines, resonated strongly with consumers. Culinary posted a sales decrease, following a high base of comparison in 2021. Garden Gourmet plant-based products continued to see strong momentum.

Zone Asia, Oceania and Africa (AOA)

-- 6.0% organic growth: 1.7% RIG; 4.3% pricing.

Sales Sales Organic Net Foreign Reported

3M-2022 3M-2021 RIG Pricing growth M&A exchange growth

Zone CHF 4.6 CHF 4.5

AOA bn bn 1.7% 4.3% 6.0% - 0.1% - 2.8% 3.0%

Organic growth reached 6.0%, with RIG of 1.7%. Pricing increased to 4.3%, with broad-based contributions from most geographies and categories. Foreign exchange reduced sales by 2.8%. Reported sales in Zone AOA increased by 3.0% to CHF 4.6 billion.

Zone AOA reported mid single-digit organic growth, with particular strength in South Asia and Sub-Saharan Africa. Growth was supported by increased pricing, a further recovery in out-of-home channels and continued momentum for affordable offerings. The Zone saw market share gains in most categories, particularly culinary, coffee and ice cream.

South-East Asia posted low single-digit growth, with robust demand in Maggi and Nescafé, particularly in Malaysia. South Asia recorded double-digit growth, supported by continued distribution expansion and innovation, with strong growth for Maggi and KitKat. Sales in Sub-Saharan Africa grew at a double-digit rate, based on strong momentum for affordable nutrition offerings particularly in Maggi and Milo. Middle East and North Africa posted low single-digit growth, as robust demand in culinary was partially offset by a sales decline in dairy. Japan reported high single-digit growth, driven by coffee and Purina PetCare. Sales in South Korea grew at a double-digit rate, driven by coffee. Oceania reported mid single-digit growth, with particular strength in Nescafé and Maggi.

By product category, culinary was the largest growth contributor, led by Maggi. Coffee posted high single-digit growth, with continued strong demand for Nescafé and Starbucks products. Sales in Nestlé Professional grew at a double-digit rate. Cocoa and malt beverages grew at a high single-digit rate. The recently launched Milo Soy resonated strongly with consumers. Confectionery reported high single-digit growth, with strong demand for KitKat. Growth in Infant Nutrition turned positive, driven by Lactogen. Sales in Purina PetCare grew at a high single-digit rate, led by Purina Pro Plan and Purina ONE.

Zone Latin America

-- 12.5% organic growth: 4.7% RIG; 7.7% pricing.

Sales Sales Organic Net Foreign Reported

3M-2022 3M-2021 RIG Pricing growth M&A exchange growth

Zone

Latin CHF 2.7 CHF 2.4

America bn bn 4.7% 7.7% 12.5% 0.1% 1.8% 14.4%

Organic growth was 12.5%, with strong RIG of 4.7%. Pricing increased to 7.7%. Foreign exchange had a positive impact of 1.8%. Reported sales in Zone Latin America increased by 14.4% to CHF 2.7 billion.

Zone Latin America reported double-digit organic growth, building on a high base of comparison in 2021. Growth was supported by strong execution and continued e-commerce momentum, with broad-based contributions across most geographies and product categories. The Zone saw market share gains in pet food, Infant Nutrition and chilled dairy.

Sales in Brazil grew at a double-digit rate, with strong growth in confectionery, cocoa and malt beverages as well as Infant Nutrition. Mexico also reported broad-based double-digit growth, reflecting high demand for Nescafé, Purina PetCare and Carnation. Sales in Chile grew at double-digit rate, led by confectionery, ice cream and Purina PetCare. The recently acquired direct-to-consumer premium chocolate business, La Fête, saw strong demand in Chile.

By product category, confectionery was the largest growth contributor, in particular KitKat and gifting products. Sales in Purina PetCare grew at a double-digit rate, led by Dog Chow, Cat Chow and Purina Pro Plan. Coffee and Nestlé Professional also reported strong double-digit growth. Infant Nutrition saw mid single-digit growth, based on robust demand for Nido and NAN functional products. Growth in dairy was flat, following a high base of comparison in 2021.

Zone Greater China

-- 3.4% organic growth: 3.8% RIG; -0.5% pricing.

Sales Sales Organic Net Foreign Reported

3M-2022 3M-2021 RIG Pricing growth M&A exchange growth

Zone

Greater CHF 1.4 CHF 1.3

China bn bn 3.8% - 0.5% 3.4% 0.0% 4.2% 7.6%

Organic growth was 3.4%, with RIG of 3.8% and pricing of -0.5%. Foreign exchange had a positive impact of 4.2%. Reported sales in Zone Greater China increased by 7.6% to CHF 1.4 billion.

Zone Greater China reported low single-digit organic growth, partly impacted by the timing of Chinese New Year. Growth was supported by innovation, with market share gains in culinary, ready-to-drink coffee and confectionery.

By product category, strong sales developments in most categories were partly offset by a sales decline in Infant Nutrition. Turnaround initiatives in Infant Nutrition continued. Coffee posted double-digit growth, based on strong momentum for Nescafé ready-to-drink and Starbucks products. Sales in culinary grew at double-digit rate, supported by new product launches. Nestlé Professional reported high single-digit growth, despite regional lockdowns. Confectionery posted high single-digit growth, led by strong demand for Shark wafer chocolate and solid growth for Hsu Fu Chi.

Nespresso

-- 3.3% organic growth: 0.2% RIG; 3.1% pricing.

Sales Sales Organic Net Foreign Reported

3M-2022 3M-2021 RIG Pricing growth M&A exchange growth

CHF 1.6 CHF 1.6

Nespresso* bn bn 0.2% 3.1% 3.3% 0.6% - 2.0% 2.0%

* RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign exchange lines

Organic growth was 3.3% based on RIG of 0.2% and increased pricing of 3.1%. Foreign exchange negatively impacted sales by 2.0%. Reported sales in Nespresso increased by 2.0% to CHF 1.6 billion.

Nespresso reported low single-digit organic growth, following strong double-digit growth in the first quarter of 2021. Out-of-home channels saw continued recovery, with increased adoption for the recently launched Momento system. Growth was fueled by continued momentum for the Vertuo system and innovation. New products included limited editions in the Master Origins range, Aged Sumatra and Papua New Guinea, as well as in the World Explorations range with Miami Espresso.

By geography, North America posted double-digit growth with continued market share gains. Europe reported a sales decrease, following a high base of comparison in 2021. Other regions combined recorded double-digit growth.

Nestlé Health Science

-- 5.6% organic growth: 4.3% RIG; 1.3% pricing.

Sales Sales Organic Net Foreign Reported

3M-2022 3M-2021 RIG Pricing growth M&A exchange growth

Nestlé

Health CHF 1.4 CHF 0.9

Science* bn bn 4.3% 1.3% 5.6% 50.1% 0.2% 55.8%

* RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign exchange lines

Organic growth was 5.6%, with robust RIG of 4.3% and increased pricing of 1.3%. Net acquisitions increased sales by 50.1%, largely related to the acquisition of the core brands of The Bountiful Company. Foreign exchange positively impacted sales by 0.2%. Reported sales in Nestlé Health Science increased by 55.8% to CHF 1.4 billion.

Nestlé Health Science posted mid single-digit organic growth with market share gains, building on two consecutive years of double-digit growth. Growth was supported by innovation and geographic expansion.

Consumer Care posted low single-digit growth. Healthy-aging products grew at a double-digit rate, supported by Boost and Nutren. Vitamins, minerals and supplements posted slightly positive growth, following a high base of comparison in early 2021 during the pandemic. Vital Proteins and Solgar continued to see strong momentum.

Medical Nutrition saw double-digit growth with continued strong sales developments for pediatric products, particularly Althéra, Alfaré and Alfamino. Palforzia, the peanut allergy treatment, saw signs of increased adoption after COVID-related delays.

By geography, sales in North America grew at a mid single-digit rate. Europe saw a slight sales decrease. Other regions posted double-digit growth.

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April 21, 2022 01:15 ET (05:15 GMT)