Press Release

Ad hoc announcement pursuant to Art. 53 LR

Vevey, October 19, 2023 FR | DE

Follow today's event live

14:00 CEST Investor call audio webcast
Full details on our website

Nestlé reports nine-month sales for 2023

• Organic growth reached 7.8%, with pricing of 8.4% and real internal growth (RIG)
of -0.6%. Growth was broad-based across geographies and categories.
• Total reported sales decreased by 0.4% to CHF 68.8 billion (9M-2022: CHF 69.1
billion). Foreign exchange decreased sales by 7.4%. Net acquisitions had a
negative impact of 0.8%.
• Portfolio management progressing. In the third quarter, Nestlé announced an
agreement to acquire a majority stake in Grupo CRM, a premium chocolate
company in Brazil. Nestlé also divested Palforzia, its peanut allergy treatment
business, to Stallergenes Greer.
• Full-year 2023 outlook confirmed: we expect organic sales growth between 7%
and 8% and underlying trading operating profit margin between 17.0% and 17.5%.
Underlying earnings per share in constant currency is expected to increase
between 6% and 10%.

Mark Schneider, Nestlé CEO, commented: “Our diversified portfolio and differentiated
offerings helped us deliver strong organic growth in the first nine months of the year.
Growth was driven by pricing as we continued to navigate historic inflation levels. The
recovery of our volume and mix is underway. We are seeing the benefits of our portfolio
optimization initiatives and increasing marketing investments behind our billionaire brands.
These steps underpin our confidence that real internal growth, the sum of volume and mix,
will turn positive in the second half of the year and again become the main driver of growth
going forward.

At the same time, Nestlé has further strengthened its nutrition strategy and stepped-up its
efforts to guide people towards a balanced diet. Actions include providing clear, front-of-
pack portion guidance, transparency on the nutritional value of our products and leading
marketing-to-children policies. We also set an ambitious target to grow the sales of our
more nutritious products by CHF 20-25 billion by 2030.”

1/10
 Zone Zone Zone Nestlé
Total Zone Other
North Zone AOA Latin Greater Health Nespresso
Group Europe Businesses
America America China Science

Sales 9M-2023 (CHF m) 68 829 19 027 14 144 13 223 9 139 3 624 4 850 4 617 205

Sales 9M-2022 (CHF m) 69 132 19 093 13 968 13 899 8 648 3 843 4 811 4 674 196

Real internal growth (RIG) -0.6% -0.9% -2.3% 0.0% -0.6% 2.3% -1.9% 1.6% 8.3%

Pricing 8.4% 8.9% 11.1% 8.6% 10.5% 2.6% 4.4% 3.5% 1.5%

Organic growth 7.8% 8.0% 8.8% 8.6% 10.0% 4.9% 2.5% 5.2% 9.8%

Net M&A -0.8% -2.2% -2.4% -0.1% 0.0% 0.1% 3.8% -0.6% 0.0%

Foreign exchange -7.4% -6.1% -5.2% -13.3% -4.3% -10.6% -5.9% -5.7% -5.1%

Reported sales growth -0.4% -0.3% 1.3% -4.8% 5.7% -5.7% 0.5% -1.2% 4.7%

Group sales
Organic growth was 7.8%. Pricing was 8.4%, reflecting the impact of cost inflation over
the last two years. RIG was -0.6%, impacted by portfolio optimization and remaining
capacity constraints. In the third quarter, RIG improved to -0.3%, despite temporary
capacity constraints for Perrier and a short-term supply constraint for vitamins, minerals
and supplements, which surfaced in August.

Growth was broad-based across most geographies and categories. In developed markets,
organic growth was 6.9%, led by pricing with negative RIG. In emerging markets, organic
growth was 9.0%, driven by pricing and slightly positive RIG.

By product category, Purina PetCare was the largest contributor to organic growth, with
strong momentum across all channels. Purina ONE, Purina Pro Plan and Felix all recorded
double-digit growth. Coffee saw high single-digit growth, with positive sales
developments across brands and channels. Starbucks products reported strong growth,
supported by innovation and the launch of ready-to-drink offerings in South-East Asia
and Oceania. Infant Nutrition posted high single-digit growth, with broad-based
contributions across brands and geographies. Confectionery recorded double-digit
growth, fueled by a strong sales development for KitKat. Dairy reported high single-digit
growth, led by coffee creamers and affordable fortified milks. Prepared dishes and
cooking aids posted mid single-digit growth, with strong demand for Maggi. Nestlé
Health Science recorded low single-digit growth, as continued momentum for Medical
Nutrition was partly offset by a sales decline in vitamins, minerals and supplements.
Water posted low single-digit growth, impacted by temporary capacity constraints for
Perrier.

By channel, organic growth in retail sales remained robust at 7.1%. E-commerce sales
grew by 12.7%, reaching 16.6% of total Group sales. Organic growth of out-of-home
channels was 15.7%.

Net divestitures decreased sales by 0.8%, largely related to the divestment of a majority
stake in Freshly as well as the disposal of the Gerber Good Start infant formula brand. The
impact on sales from foreign exchange was negative at 7.4%, following broad-based

2/10
appreciation of the Swiss Franc. Total reported sales decreased by 0.4% to CHF 68.8
billion.

Portfolio Management
Nestlé and private equity firm PAI Partners have completed the transaction to create a
joint venture for Nestlé’s frozen pizza business in Europe. The effective date is September
1, 2023. Nestlé retains a non-controlling stake with equal voting rights alongside PAI
Partners, remaining invested in this business and participating in future growth and value
creation in the category.

On September 4, 2023, Nestlé divested Palforzia, its peanut allergy treatment business, to
Stallergenes Greer, a biopharmaceutical company which specializes in the diagnosis and
treatment of allergies. The transaction was closed upon signing. Nestlé will receive
milestone payments and ongoing royalties from Stallergenes Greer.

Nestlé announced an agreement with Advent International on September 7, 2023, to

acquire a majority stake in Grupo CRM, a premium chocolate player in Brazil. The
transaction is expected to close in 2024, subject to customary regulatory approvals.

Zone North America

• 8.0% organic growth: -0.9% RIG; 8.9% pricing.

Sales Sales Organic Net Foreign Reported

RIG Pricing
9M-2023 9M-2022 growth M&A exchange Growth

Zone North America CHF 19.0 bn CHF 19.1 bn -0.9% 8.9% 8.0% -2.2% -6.1% -0.3%

Organic growth was 8.0%, with pricing of 8.9%. RIG was -0.9%, reflecting portfolio
optimization actions and capacity constraints. Net divestitures reduced sales by 2.2%, as
a result of the divestment of a majority stake in Freshly as well as the disposal of the
Gerber Good Start infant formula brand. Foreign exchange had a negative impact of 6.1%.
Reported sales in Zone North America decreased by 0.3% to CHF 19.0 billion.

Zone North America maintained broad-based growth across most brands and categories,
despite a challenging consumer environment. Growth was driven by pricing, favorable
mix as well as strong momentum in e-commerce across categories and out-of-home
channels. The Zone saw market share gains in pet food, soluble and portioned coffee, as
well as frozen meals.

By product category, Purina PetCare was the largest growth contributor, with broad-
based demand across brands, segments and channels, particularly e-commerce. In July,
the Zone launched Tidy Care, a new range of litter products to enhance comfort and
monitor cat health, with strong initial demand. Sales for Nestlé Professional and
Starbucks out-of-home continued to grow at a strong double-digit rate, led by new
customer acquisition and e-commerce momentum. The beverages category, including
Starbucks products, Coffee mate and Nescafé, posted mid single-digit growth. Gerber
3/10
baby food reported mid single-digit growth, led by healthy snacking and infant cereals.
Nido fortified milks reported strong double-digit growth, driven by distribution expansion.
Confectionery in Canada recorded double-digit growth, fueled by KitKat. Growth in frozen
food was negative, impacted by the winding down of the frozen meals and pizza business
in Canada. In the U.S., growth in frozen food was positive, with robust growth and market
share gains for mainstream pizza brands Jack’s and Tombstone. Water saw a sales
decrease, as temporary capacity constraints for Perrier continued to outweigh strong
growth for S.Pellegrino and Acqua Panna.

Zone Europe

• 8.8% organic growth: -2.3% RIG; 11.1% pricing.

Sales Sales Organic Net Foreign Reported

RIG Pricing
9M-2023 9M-2022 growth M&A exchange Growth

Zone Europe CHF 14.1 bn CHF 14.0 bn -2.3% 11.1% 8.8% -2.4% -5.2% 1.3%

Organic growth was 8.8%, with pricing of 11.1%. RIG was -2.3%, following capacity
constraints and portfolio optimization actions. Foreign exchange negatively impacted
sales by 5.2%. Net divestitures reduced sales by 2.4%. Reported sales in Zone Europe
increased by 1.3% to CHF 14.1 billion.

Growth in Zone Europe was supported by pricing, strong sales development for e-
commerce and continued momentum for out-of-home channels. The Zone saw market
share gains in pet food and Infant Nutrition.

By product category, the key contributor to growth was Purina PetCare, driven by
differentiated offerings across premium brands Felix, Gourmet and Purina ONE. Coffee
saw mid single-digit growth, with particular strength for Nescafé. In September, the Zone
launched Nescafé Dolce Gusto Neo paper-based pods in France and Switzerland.
Confectionery reported high single-digit growth, with continued market share gains for
KitKat. Nestlé Professional posted double-digit growth, led by beverages. Infant Nutrition
recorded high single-digit growth, based on continued momentum for premium infant
formula, particularly NAN and BEBA. Culinary posted mid single-digit growth, with robust
sales developments for Maggi and Thomy. In the third quarter, the transaction to create a
frozen pizza joint venture in Europe was completed. Sales growth in water was flat, as
strong growth for S.Pellegrino and Acqua Panna was offset by the impact of temporary
capacity constraints for Perrier.

Zone Asia, Oceania and Africa (AOA)

• 8.6% organic growth: 0.0% RIG; 8.6% pricing.

Sales Sales Organic Net Foreign Reported

RIG Pricing
9M-2023 9M-2022 growth M&A exchange Growth

Zone AOA CHF 13.2 bn CHF 13.9 bn 0.0% 8.6% 8.6% -0.1% -13.3% -4.8%

4/10
Organic growth was 8.6%, with flat RIG. Pricing increased to 8.6%, with broad-based
contributions from all geographies and categories. Foreign exchange reduced sales by
13.3%. Reported sales in Zone AOA decreased by 4.8% to CHF 13.2 billion.

Growth in Zone AOA was supported by pricing as well as continued momentum of e-

commerce and out-of-home channels. The Zone saw market share gains in coffee, cocoa
and malt beverages as well as chocolate.

South-East Asia posted mid single-digit growth, with strong sales developments in the
Philippines, Malaysia and Thailand. South Asia recorded strong double-digit growth
across most categories. Growth in India was based on continued distribution expansion
and new product launches, with particularly strong performance for KitKat and Nescafé.
Middle East and Africa saw double-digit growth, with particular strength for affordable
offerings in culinary, Infant Nutrition and coffee. Japan reported low single-digit growth,
with particular strength for KitKat based on innovation and gifting products. South Korea
posted high single-digit growth, fueled by Starbucks products. Oceania recorded mid
single-digit growth, supported by Purina PetCare, KitKat and Nescafé.

By product category, Infant Nutrition was the largest growth contributor, led by Lactogen,
NAN and Cerelac. Culinary recorded double-digit growth, with continued strength for
Maggi based on increased distribution and new product launches. Coffee saw high
single-digit growth, with robust demand for Nescafé and Starbucks products and strong
commercial execution. Ambient dairy posted mid single-digit growth, driven by increased
focus on value-added segments following portfolio optimization actions. Sales for Nestlé
Professional grew at a strong double-digit rate across most geographies and categories,
supported by channel penetration and customer acquisition. Confectionery reported high
single-digit growth, fueled by strong momentum for KitKat. Purina PetCare saw mid
single-digit growth, led by Purina ONE, Supercoat and Felix.

Zone Latin America

• 10.0% organic growth: -0.6% RIG; 10.5% pricing.

Sales Sales Organic Net Foreign Reported

RIG Pricing
9M-2023 9M-2022 growth M&A exchange Growth

Zone Latin America CHF 9.1 bn CHF 8.6 bn -0.6% 10.5% 10.0% 0.0% -4.3% 5.7%

Organic growth was 10.0%, with pricing of 10.5%. RIG was -0.6%, turning slightly
positive in the third quarter. Foreign exchange had a negative impact of 4.3%. Reported
sales in Zone Latin America increased by 5.7% to CHF 9.1 billion.

Zone Latin America recorded strong growth across all geographies and product
categories. Growth was supported by pricing, strong operational execution and continued
momentum of out-of-home channels. The Zone saw market share gains in pet food,
Infant Nutrition and culinary.

5/10
Brazil posted strong double-digit growth, with continued momentum for confectionery,
Infant Nutrition and beverages, including Nescafé and Nescau. Mexico reported high
single-digit growth, with strong sales developments for dairy, coffee and Nestlé
Professional.

By product category, confectionery was the largest growth contributor, reflecting strong
demand for KitKat and key local brands as well as new product launches. Infant Nutrition
saw double-digit growth, based on solid momentum for NAN infant formula and Mucilon
infant cereal. Coffee reported broad-based double-digit growth, supported by Nescafé
soluble coffee. Recent launches such as Nescafé Dolce Gusto Neo and Nescafé Farmers
Origins, resonated strongly with consumers in Brazil. Dairy posted high single-digit
growth, supported by dairy culinary solutions and fortified milks. Sales for Nestlé
Professional grew at a strong double-digit rate, with continued strength for branded
coffee solutions. Culinary posted close to double-digit growth, based on new product
launches and continued traction for Recetas Nestlé, the online recipe platform. Purina
PetCare saw mid single-digit growth, following a high base of comparison in 2022.

Zone Greater China

• 4.9% organic growth: 2.3% RIG; 2.6% pricing.

Sales Sales Organic Net Foreign Reported

RIG Pricing
9M-2023 9M-2022 growth M&A exchange Growth

Zone Greater China CHF 3.6 bn CHF 3.8 bn 2.3% 2.6% 4.9% 0.1% -10.6% -5.7%

Organic growth was 4.9%, with pricing of 2.6%. RIG was 2.3%. Foreign exchange had a
negative impact of 10.6%. Reported sales in Zone Greater China decreased by 5.7% to
CHF 3.6 billion.

Growth in Zone Greater China was supported by strong sales developments for out-of-
home businesses, e-commerce momentum and pricing. The Zone saw market share
gains in pet food and confectionery.

By product category, Nestlé Professional was the largest growth contributor, supported
by innovation and distribution expansion. Confectionery recorded high single-digit
growth, led by Hsu Fu Chi and Shark wafer. Culinary posted high single-digit growth, with
increased demand for Totole in out-of-home channels and innovation. Infant Nutrition
saw low single-digit growth, led by NAN specialty offerings. Coffee reported low single-
digit growth, supported by ready-to-drink offerings. Sales for Purina PetCare grew at a
double-digit rate, based on new product launches and the recent expansion of local
production.

6/10
Nestlé Health Science

• 2.5% organic growth: -1.9% RIG; 4.4% pricing.

Sales Sales Organic Net Foreign Reported

RIG Pricing
9M-2023 9M-2022 growth M&A exchange Growth

Nestlé Health Science CHF 4.9 bn CHF 4.8 bn -1.9% 4.4% 2.5% 3.8% -5.9% 0.5%

Organic growth was 2.5%, with pricing of 4.4%. RIG was -1.9%, impacted by a short-term
supply constraint in the third quarter for the vitamins, minerals and supplements
business. Net acquisitions increased sales by 3.8%, largely related to the consolidation of
Orgain. Foreign exchange negatively impacted sales by 5.9%. Reported sales in Nestlé
Health Science increased by 0.5% to CHF 4.9 billion.

Vitamins, minerals and supplements saw negative growth. Sales in the third quarter
decreased following an IT integration issue when implementing highly automated
systems during the consolidation of U.S. packaging sites. The resulting short-term supply
constraints are expected to be resolved by early 2024. Market growth in the vitamins,
minerals and supplements category has returned to positive territory.

Active nutrition reported mid single-digit growth, with market share gains and a robust
sales development for Orgain and Vital Proteins.

Medical Nutrition recorded strong double-digit growth, with market share gains across all
segments. Growth was led by adult medical care products as well as pediatric and allergy
products. The gastrointestinal portfolio, including Vowst and Zenpep, saw strong double-
digit growth.

By geography, North America saw low single-digit growth. Europe reported high single-
digit growth. Other regions combined posted mid single-digit growth.

Nespresso

• 5.2% organic growth: 1.6% RIG; 3.5% pricing.

Sales Sales Organic Net Foreign Reported

RIG Pricing
9M-2023 9M-2022 growth M&A exchange Growth

Nespresso CHF 4.6 bn CHF 4.7 bn 1.6% 3.5% 5.2% -0.6% -5.7% -1.2%

Organic growth was 5.2%, with pricing of 3.5%. RIG was 1.6%, reaching 3.5% in the third
quarter. Foreign exchange negatively impacted sales by 5.7%. Reported sales in
Nespresso decreased by 1.2% to CHF 4.6 billion.

7/10
The key growth contributor was the Vertuo system, which continued to see broad-based
momentum. Growth in out-of-home channels was also strong, with further adoption of
the Momento system, particularly in the office segment. Innovation continued to resonate
with consumers, following the launch of home compostable coffee capsules in France
and Switzerland.

By geography, North America posted double-digit growth, with continued market share
gains. Europe reported positive growth. Other regions combined saw low single-digit
growth.

Business as a force for good: Creating economic opportunities for the world’s youth

Nestlé celebrates the tenth anniversary of Nestlé Needs YOUth this year. The company
launched this initiative at a time when youth unemployment in Europe was at a record
high. The goal was to help young people all over the continent improve their employability
and obtain employment. Since then, the program has scaled to a global scope.

Nestlé helps youth become more employable by offering traineeships and

apprenticeships. Last year alone, the company provided nearly 11 500 such opportunities.
Nestlé also offers online training, career guidance, mentorships and networking
opportunities. Well over one million people took part in digital events in 2022. While
many trainees and apprentices take a permanent position with Nestlé, the goal of the
program is to equip them with skills that can help them secure a job anywhere.

Employability remains a key pillar of the program today, but Nestlé has also expanded it
to include two additional dimensions: agripreneurship and entrepreneurship. Supporting
young farmers and entrepreneurs all over the world is in line with the company’s
objectives to advance regenerative agriculture and to develop innovative products and
services.

With the average age of farmers now well into the 50s in many parts of the world, Nestlé
is also striving to make farming more attractive to young people. Encouraging them to
pursue a livelihood in farming is an opportunity to embed regenerative agriculture
methods, which are key to helping address climate change. Through Nestlé’s
Agripreneurship Program, young farmers learn how to run their farms as businesses from
which they can make a decent living. Nestlé provides them with access to training
courses that include regenerative farming topics like agroforestry, soil health and animal
welfare. In 2022, more than 5 000 young farmers participated in the program.

The ability to sustainably feed the world’s growing population will be determined not only
by today’s young farmers but also by today’s young innovators. Many of them have ideas
in line with Nestlé’s priorities – be they related to regenerative agriculture, plant-based
products, sustainable packaging solutions, or nutrition. Through Nestlé’s Youth
Entrepreneurship Platform, the company empowers young people to learn, develop new
skills, test ideas and turn concepts into viable business projects. It connects them to like-
minded individuals and provides them with access to experts, equipment and R&D labs.

8/10
Nestlé endeavors to scale this important work to have a greater impact. That’s why it
founded the Global Alliance for YOUth and brought together 24 other like-minded
companies that also provide training and first job opportunities to young people. It has
additionally partnered with UNESCO to help young people in Latin America achieve
positive social impact in their communities, and it continuously looks for new
opportunities to support more of the world’s youth.

Outlook

Full-year 2023 outlook confirmed: we expect organic sales growth between 7% and 8%
and underlying trading operating profit margin between 17.0% and 17.5%. Underlying
earnings per share in constant currency is expected to increase between 6% and 10%.

Contacts:
Media Christoph Meier Tel.: +41 21 924 2200 [email protected]
Investors Luca Borlini Tel.: +41 21 924 3509 [email protected]

9/10
Annex

Nine-month sales overview by operating segment

Zone Zone Zone Nestlé
Total Zone Other
North Zone AOA Latin Greater Health Nespresso
Group Europe Businesses
America America China Science

Sales 9M-2023 (CHF m) 68 829 19 027 14 144 13 223 9 139 3 624 4 850 4 617 205

Sales 9M-2022 (CHF m) 69 132 19 093 13 968 13 899 8 648 3 843 4 811 4 674 196

Real internal growth (RIG) -0.6% -0.9% -2.3% 0.0% -0.6% 2.3% -1.9% 1.6% 8.3%

Pricing 8.4% 8.9% 11.1% 8.6% 10.5% 2.6% 4.4% 3.5% 1.5%

Organic growth 7.8% 8.0% 8.8% 8.6% 10.0% 4.9% 2.5% 5.2% 9.8%

Net M&A -0.8% -2.2% -2.4% -0.1% 0.0% 0.1% 3.8% -0.6% 0.0%

Foreign exchange -7.4% -6.1% -5.2% -13.3% -4.3% -10.6% -5.9% -5.7% -5.1%

Reported sales growth -0.4% -0.3% 1.3% -4.8% 5.7% -5.7% 0.5% -1.2% 4.7%

Nine-month sales overview by product

Powdered & Milk Nutrition & Prepared
Total Confec-
liquid Water products & Health dishes & PetCare
Group tionery
beverages ice cream Science cooking aids

Sales 9M-2023 (CHF m) 68 829 18 257 2 606 8 100 11 470 8 649 5 735 14 012
Sales 9M-2022 (CHF m) 69 132 18 461 2 776 8 267 11 625 9 152 5 640 13 211

Real internal growth (RIG) -0.6% -0.3% -6.9% -3.0% -0.8% -3.2% 2.2% 2.6%

Pricing 8.4% 7.0% 10.4% 9.6% 7.1% 8.5% 7.9% 10.4%

Organic growth 7.8% 6.7% 3.5% 6.6% 6.3% 5.3% 10.1% 13.1%

10/10