Nestle: 2.4 per cent down

Nestlé achieved sales of 67.1 bn Swiss francs (approx. 71,63 bn. euros) in the first nine months of 2024, a decline of 2.4 per cent. The Swiss company announced this in a press release. Purina petcare achieved low single-digit organic growth, driven by the continued momentum of the premium science-based brands Purina ProPlan, Purina One and Fancy Feast.

Organic growth amounted to 2.0 per cent with real internal growth of 0.5 per cent, “in an environment of declining consumer demand and customer destocking”. Exchange rate effects reduced turnover by 4.1 per cent and net disposals had a negative impact of 0.3 per cent.

In the updated outlook for the full year 2024, Nestlé CEO Laurent Freixe expects organic sales growth of around 2 per cent and an underlying operating profit margin of around 17.0 per cent. “Consumer demand has weakened in recent months and we expect this environment to remain subdued,” explained Freixe.

The Group's sales were “impacted by subdued consumer demand and consumers' reluctance to buy global brands in the context of geopolitical tensions”. In addition, growth in the third quarter was slowed by measures to reduce customer inventories, particularly in North and South America. In terms of regions, organic growth was driven by the emerging markets and Europe, which more than compensated for the slight decline in North America.

In Zone North America, Purina Petcare made the largest contribution to growth with low single-digit growth, Nestlé said, led by Purina Pro Plan, Fancy Feast and Friskies. In Zone Europe, Purina Petcare also made the largest contribution to growth with mid single-digit growth, driven by the premium brands Purina One, Gourmet and Pro Plan.

In Zone Asia, Oceania and Africa, Purina products achieved mid single-digit growth, led by Felix and Purina One. In Latin America, growth in Purina products was flat, supported by Felix and Friskies, according to the company. In Greater China, sales of petcare products continued to grow at double-digit rates, driven by new product launches and continued e-commerce momentum for Purina Pro Plan and Friskies, according to the statement.