Nestlé has reported its nine-month sales for 2021 with coffee and Purina PetCare continuing to be Nestlé’s top-performing segments.
Nestlé’s overall organic growth reached 7.6 per cent, with real internal growth (RIG) of six per cent and pricing of 1.6 per cent. Growth was supported by continued momentum in retail sales, steady recovery of out-of-home channels, increased pricing, and market share gains.
Nestlé said it now expected full-year growth between six and seven per cent, up from its previous guidance of between five and six per cent.
By product category, the largest contributor to organic growth was coffee, fuelled by strong momentum for the three main brands Nescafé, Nespresso and Starbucks. Starbucks products posted 15.5 per cent growth, with sales reaching 2.2 billion Swiss francs (AUD$3.18 billion) across 79 markets.
Nestlé Purina PetCare reported 11.36 billion Swiss francs (AUD$16.59 billion) in sales for the first nine months of 2021, with RIG up nearly 10 per cent from the same period in 2020.
It achieved the second-highest net sales numbers (behind coffee) and the highest real internal growth and organic growth rates (12.1 per cent) over this nine-month period.
Purina PetCare’s double-digit growth was led by science-based and premium brands Purina Pro Plan, Fancy Feast and Purina ONE, as well as veterinary products.
François-Xavier Roger, Chief Financial Officer, Nestlé SA, said that PetCare continues to see strong growth globally.
“By product categories, the largest contributor to growth was Purina PetCare, with strong sales developments across all brands, markets and channels.
“Most segments and geographies grew at a double-digit rate with market share gains. Purina’s performance was driven by continued strong demand for premium products, supported by successful innovation and momentum across all channels.”
Mark Schneider, CEO, Nestlé, said the strong organic growth was driven by broad-based contributions from most geographies and categories.
“The relentless focus of our teams on local execution and agility enabled us to navigate input cost inflation and supply chain constraints. In the third quarter, we increased pricing in a responsible manner, while maintaining strong real internal growth. Investments in innovation, digitalisation and sustainability further supported growth by enhancing the relevance and differentiation of our offerings.
“Nestlé continues to take actions on sustainability. We recently laid out our plans to support a just transition to regenerative food systems, which will help achieve our climate targets as we work closely with farming communities around the world to improve soil health, restore water cycles and increase biodiversity for the long-term.”