Nestlé announces first quarter results for 2022, reports an organic growth of 7.6 percent

Nestlé, the largest food and beverage company in the world, announces financial results at group level for the first quarter of 2022. The organic growth reached 7.6 percent, with real internal growth (RIG) of 2.4 percent and pricing of 5.2 percent. Growth was broad-based across most geographies and categories, with increased pricing, continued momentum in retail sales and a further recovery in out-of-home channels. Total reported sales increased by 5.4 percent to CHF 22.2 billion (3M-2021: CHF 21.1 billion). In April, Nestlé Health Science completed the acquisition of a majority stake in Orgain, a leader in plant-based nutrition.

Mark Schneider, Nestlé CEO, commented:”In these first months of the year, the war in Ukraine has caused unspeakable human suffering. We remain focused on supporting our colleagues there and providing humanitarian relief, while standing with the international community in the call for peace. Amid this challenging environment, we delivered strong organic sales growth with resilient RIG. We stepped up pricing in a responsible manner and saw sustained consumer demand. Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year. The Nestlé team addressed these headwinds and advanced our long-term strategy and sustainability objectives with agility and determination. We confirm our guidance for the year”.

Organic growth reached 6.9 percent, with solid RIG of 2.8 percent. Pricing increased to 4.1 percent, with an acceleration across most geographies and categories. Foreign exchange negatively impacted sales by 5.4 percent. Reported sales in Zone Europe increased by 2.2 percent to CHF 4.6 billion.

Zone Europe reported high single-digit organic growth, supported by higher pricing, sustained e-commerce momentum and a further recovery in out-of-home channels. The Zone continued to see market share gains, particularly in pet food, coffee and plant-based food.

By product category, the key growth driver was Nestlé Professional, with sales exceeding 2019 levels. Sales in Purina PetCare grew at a double-digit rate, driven by premium brands Purina ONE, Purina Pro Plan and Gourmet as well as veterinary products. Sales in Infant Nutrition grew at a double-digit rate, helped by market share gains. Confectionery reported mid single-digit growth, with a strong recovery for KitKat and gifting products. Growth in coffee was almost flat, following strong double-digit growth in the first quarter of 2021. Starbucks products resonated strongly with consumers. Culinary posted a sales decrease, following a high base of comparison in 2021. GARDEN GOURMET® plant-based products continued to see strong momentum.

“Nestlé Romania finished the first quarter with double-digit growth, an increase supported by a strong evolution in all categories. The growth is due to the sustainable choices with a balanced nutritional profile made in the company’s portfolio. In the first three months of the year, launches took place in all nestle product categories, being brought on the market innovative products under brands entered for the first time in Romania – such as NESVITA® (oat snacks for breakfast) and NANCARE® (pediatric supplements) or being extended the ranges already existing on the market“, stated Silvia Sticlea, Country Manager Nestlé România.

Thus, Nestle’s portfolio has grown this spring with new products suitable for all ages and tastes: MAGGI Idea of the Day Chicken with mushrooms and MAGGI Sauce for Hamburger, Fitness Dark Chocolate, NESCAFÉ® Cappuccino Mocha and NESCAFÉ® Frappe Vanilla, NESCAFÉ® Dolce Gusto Buondi and Essenza di Moka, Starbucks By Nespresso® Breakfast Blend and The Premium Signature Chocolate, JOE Dreams Cocos, After Eight Strawberry, Les recettes de L’atelier Dark chocolate with affines, almonds and hazelnuts and Milk chocolate, caramel, almonds and hazelnuts, KitKat Pops, Smarties bag and Easter seasonal under the brands Smarties and Kitkat, and in the pet food segment, the Felix range has been relaunched.