Press Release: Nestle: Nestlé reports three-month sales for 2021

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Vevey, April 22, 2021

Nestlé reports three-month sales for 2021

-- Organic growth reached 7.7%, with real internal growth (RIG) of 6.4% and

pricing of 1.2%. Growth was broad-based across most geographies,

supported by early signs of recovery from out-of-home channels, improved

pricing and market share gains.

-- Foreign exchange reduced sales by 5.3% due to the continued appreciation

of the Swiss franc against most currencies. Net divestitures had a

negative impact of 1.0%. As a result, total reported sales increased by

1.3% to CHF 21.1 billion (3M-2020: CHF 20.8 billion).

-- Portfolio management on track. The sale of Nestlé's regional spring

water brands, purified water business and beverage delivery service in

the U.S. and Canada was completed on March 31, 2021. The acquisition of

Essentia Water was completed on March 5, 2021.

-- Full-year 2021 outlook confirmed: continued increase in organic sales

growth towards a mid single-digit rate. Underlying trading operating

profit margin with continued moderate improvement. Underlying earnings

per share in constant currency and capital efficiency expected to

increase.

Mark Schneider, Nestlé CEO, commented: ""We are pleased with

Nestlé's strong organic sales growth in the first quarter, building

on broad-based contributions from most geographies and product

categories. Our growth was fueled by disciplined execution, enhanced

digital capabilities and rapid innovation, resulting in further market

share gains. Retail sales saw solid growth and out-of-home channels saw

signs of improvement. We confirm our guidance for the year and our

mid-term outlook for sustained mid single-digit organic growth.

The development of COVID-19 vaccines has given the world hope and we are

supporting the broad and equitable delivery of vaccines in the

communities where we operate. Our partnership with the International

Federation of the Red Cross and Red Crescent Societies is helping to get

vaccines to those who need them most. In these challenging times, we can

truly demonstrate how business can act as a force for good and help

accelerate the recovery."

Nestlé

Total Zone Zone Zone Health Other

Group AMS EMENA AOA Nespresso Science Businesses

Sales

3M-2021

(CHF m) 21 089 8 244 5 203 5 094 1 571 930 47

Sales

3M-2020

(CHF

m)* 20 812 8 347 5 313 4 974 1 359 765 54

Real

internal

growth

RIG 6.4% 4.8% 3.8% 8.8% 16.3% 9.4% - 11.1%

Pricing 1.2% 2.4% 0.6% 0.3% 0.8% 0.1% 0.3%

Organic

growth 7.7% 7.2% 4.4% 9.1% 17.1% 9.5% - 10.8%

Net M&A - 1.0% 0.3% - 3.7% - 3.4% - 0.1% 17.3% 0.0%

Foreign

exchange - 5.3% - 8.6% - 2.8% - 3.4% - 1.4% - 5.2% - 2.3%

Reported

sales

growth 1.3% - 1.2% - 2.1% 2.3% 15.6% 21.6% - 13.2%

* 2020 figures restated following the disclosure of Nestlé Health

Science and Nespresso as standalone segments from 2021 onwards

(previously combined and presented in Other Businesses).

Group sales

Organic growth reached 7.7%, with RIG of 6.4%. Pricing increased to 1.2%,

reflecting input cost inflation.

Growth was broad-based across most geographies. Organic growth was 5.0%

in developed markets, based mostly on RIG. Pricing was positive. Growth

in emerging markets was 11.4%, with strong RIG and positive pricing.

Most product categories delivered strong organic growth. Coffee was the

largest contributor to growth, fueled by strong demand for Nespresso,

Nescafé and Starbucks products. Dairy grew at a double-digit rate,

based on elevated demand for home-baking products and fortified milks.

Purina PetCare saw high single-digit growth, led by its science-based

and premium brands Purina Pro Plan, Purina ONE and Felix. Prepared

dishes and cooking aids posted broad-based double-digit growth, with

robust momentum across most brands. Vegetarian and plant-based food

offerings continued to see strong double-digit growth, led by Garden

Gourmet. Confectionery grew at a double-digit rate, supported by

improved growth in impulse and gifting products as well as sustained

momentum in home-baking products. Nestlé Health Science reported

high single-digit growth, reflecting increased demand for vitamins,

minerals and supplements and healthy-aging products. Infant Nutrition

saw a sales decrease. A return to positive growth in China was more than

offset by sales declines in other markets, due to consumer stockpiling

in March last year and lower birth rates in the context of the pandemic.

Water recorded negative growth due to its high exposure to out-of-home

channels.

By channel, retail sales posted high single-digit organic growth,

reflecting continued strong demand for at-home consumption. Sales

declines in out-of-home channels moderated, with a return to positive

growth in AOA. E-commerce sales grew by 39.6%, reaching 14.5% of total

Group sales. Most categories saw strong momentum, particularly coffee,

Purina PetCare and culinary.

Net divestitures decreased sales by 1.0%, largely related to the

divestment of the Herta charcuterie business and the Yinlu peanut milk

and canned rice porridge businesses. Foreign exchange reduced sales by

5.3%, reflecting the appreciation of the Swiss franc versus most

currencies, particularly in emerging markets. Total reported sales

increased by 1.3% to CHF 21.1 billion.

Portfolio Management

On March 5, 2021, Nestlé completed the acquisition of Essentia

Water, a premium functional water brand in the U.S.

On March 31, 2021, Nestlé completed the sale of its regional spring

water brands, purified water business and beverage delivery service in

the U.S. and Canada to One Rock Capital Partners, in partnership with

Metropoulos & Co. for USD 4.3 billion.

Zone Americas (AMS)

-- 7.2% organic growth: 4.8% RIG; 2.4% pricing.

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

positive pricing.

-- Latin America reached double-digit organic growth, with positive RIG and

pricing.

Sales Sales Organic Net Foreign Reported

3M-2021 3M-2020 RIG Pricing growth M&A exchange growth

Zone CHF 8.2 CHF 8.3

AMS bn bn 4.8% 2.4% 7.2% 0.3% - 8.6% - 1.2%

Organic growth was 7.2%, with strong RIG of 4.8%. Pricing contributed

2.4%, improving in both North and Latin America. Net acquisitions

increased sales by 0.3%. The acquisitions of Freshly and Essentia Water

more than offset the divestiture of the U.S. ice cream business. Foreign

exchange had a negative impact of 8.6%, reflecting broad-based currency

depreciations against the Swiss franc, particularly in Latin America.

Reported sales in Zone AMS decreased by 1.2% to CHF 8.2 billion.

Zone AMS reported high single-digit organic growth, with a high base of

comparison in 2020. The Zone saw broad-based market share gains, led by

pet food, coffee, dairy and Infant Nutrition.

North America recorded mid single-digit growth, with strong RIG in most

product categories and positive pricing. Frozen and chilled food was the

largest growth contributor, supported by Stouffer's, Lean Cuisine and

the recently launched Life Cuisine. The newly acquired Freshly business

posted strong growth, helped by expanded distribution. The beverages

category grew at a double-digit rate, with strong demand for Starbucks

at-home products, Coffee mate and Nescafé. Purina PetCare delivered

mid single-digit growth, with strong momentum in e-commerce and premium

brands Purina Pro Plan, Purina ONE and Fancy Feast. Merrick recorded

strong growth, supported by new product launches in Healthy Grains.

Home-baking products, including Toll House and Carnation, saw positive

growth. Sales of ice cream and confectionery in Canada grew at a

double-digit rate, driven by Häagen-Dazs and KitKat. Water and

Nestlé Professional reported negative growth, with sales declines

moderating.

Latin America reached double-digit growth, with both strong RIG and

pricing across geographies and most product categories. Sales in Brazil

grew at a double-digit rate, with strong growth in confectionery, dairy

and coffee. Mexico also reported broad-based double-digit growth,

reflecting high demand for Nescafé and home-baking brands, La

Lechera and Abuelita. Sales in Chile grew at a double-digit rate, led by

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