Nestlé posts nine-month results upturn, with KitKat offering a sales boost
Nestlé has reported a further upturn in results for the group in its nine-month results, with its confectionery interests recording single-digit growth led by a strong performance from its core KitKat brand and an e-commerce boost, writes Neill Barston.
Total sales for the period stood at CHF 63.3 billion, representing a growth total of 6%, with its sweets and snacks interests seeing a rise of a similar level, making up CHF 5.1billion, up 4.7billion for the same time last year.
Similarly dairy also reported mid single-digit growth for the business, based on sustained demand for fortified milks, coffee creamers and ice cream.
Notably, one of its key success areas came with the Nestlé Health Science division, which grew at a double-digit rate, reflecting strong demand for consumer care products particularly vitamins, minerals and supplements.
In its outlook, the business forecast moderate margin improvements beyond 2021, against the backdrop of a global market experiencing continued supply chain issues which has impacted on all segments of the food and drink sector, including confectionery and bakery.
Mark Schneider, Nestlé CEO, commented: “We are pleased with Nestlé’s strong organic growth in the nine months, 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.”