Nestle reports 9M revenue CHF 67.1B vs. CHF 68.8B last year

Organic growth was 2.0% for the first nine months, with positive real internal growth. RIG was 0.5%, in an environment of softening consumer demand and actions taken in the third quarter to reduce customer inventory. Pricing was 1.6%, reducing following unprecedented increases in the prior two years. Total reported sales amounted to CHF 67.1B down 2.4%. Foreign exchange reduced sales by 4.1% and net divestitures by 0.3%. Laurent Freixe, Nestle CEO, commented: “We delivered organic sales growth, driven by positive real internal growth. Consumer demand has weakened in recent months, and we expect the demand environment to remain soft. Given this outlook and our further actions to reduce customer inventories in the fourth quarter, we have updated our full-year guidance, with organic sales growth expected to be around 2%, in line with the first nine months. Nestle is uniquely positioned to win in our industry, given our global scale, broad portfolio of iconic brands and innovative products that connect with people every day and in every stage of their lives. Building on this strong foundation, we will sharpen our focus on consumers and customers and advance our categories to accelerate performance and gain market share. We will also expand our digital transformation to enhance agility and efficiency. For our brands to win in the market, we need to invest. We will generate the resources we need through efficiencies and growth leverage. Disciplined in-market execution will drive Nestle’s virtuous circle to sustain profitable growth over time, and we have exceptional people to make this happen. Today’s organizational changes will align Nestle, bringing simplicity and focus. I look forward to sharing more of our plans at our Capital Markets Day in November.”