Nestlé Half-Year Report 2024

Mark Schneider, Nestlé CEO, commented: “Positive real internal growth is back. We delivered improved volume and mix growth across the Group in the second quarter. Nestlé Health Science is recovering as planned and is set for a strong second half. Looking ahead to the remainder of the year, we will continue to drive RIG by launching innovations that address consumer trends and growing our large iconic brands. At the same time, we have seen pricing come down faster than expected. Therefore, we consider it prudent to adjust our guidance for the year, with organic sales growth now expected to be at least 3%.”

Highlights

• Organic growth of 2.1%, with positive real internal growth (RIG) of 0.1% for the first half and 2.2% for the second quarter improving in all Zones and categories. Pricing of 2.0%.
• Total reported sales of CHF 45.0 billion (-2.7%), with an impact from foreign exchange of -4.4% and net divestitures of -0.4%.
• Underlying trading operating profit (UTOP) margin increased 30 basis points to 17.4% on a reported basis and up 40 basis points in constant currency.
• Trading operating profit (TOP) margin increased 50 basis points to 16.4% on a reported basis.
• Underlying earnings per share up 3.3% in constant currency (-1.0% on a reported basis to CHF 2.40). Earnings per share increased 1.8% to CHF 2.16 on a reported basis.
• Free cash flow up CHF 0.6 billion to CHF 4.0 billion.