Nestlé reports half year results for 2024 and announces 2.1% organic growth

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%.”

Group sales

Organic growth was 2.1%. RIG was 0.1%, strengthening in the second quarter to 2.2%, with broad-based improvement across geographies and categories. Pricing was 2%, decelerating to 0.6% in the second quarter, largely reflecting a high base of comparison in 2023 and increased growth investments. By geography, organic growth was driven by Europe and emerging markets. In developed markets, organic growth was 1%, led by pricing with negative RIG. In emerging markets, organic growth was 3.7%, driven by pricing and close to flat RIG.

Organic growth of 4.5% was broad-based across geographies and almost all categories. RIG was 1.3%, increasing to 2.9% in the second quarter. Pricing was 3.1%. Foreign exchange reduced sales by -3.7% and net divestitures impacted sales by -2.7%. Reported sales in Zone Europe decreased by -1.9% to CHF 9.3 billion. The Zone achieved market share gains in pet food and ambient culinary.

By product category, the key contributor to growth was Purina PetCare. The business delivered mid single-digit growth, driven by differentiated offerings across premium brands Gourmet, Purina ONE and Felix. Confectionery achieved high single-digit growth fueled by strong momentum for KitKat and key local brands. Coffee delivered mid single-digit growth, led by Nescafé soluble coffee and Starbucks products. Nestlé Professional delivered mid single-digit growth, led by beverage solutions. Culinary achieved positive growth, supported by new product launches in Maggi, including its new Asia range and Thomy. Infant Nutrition posted flat growth, following a high base of comparison in 2023.

Nestlé Romania financial results for H1 2024

"We are pleased to announce the financial results for the first half of the year for Nestlé Romania, achieving a solid growth of 7.2%. This result reflects the focus of our team to provide high-quality products and meet the ever-evolving needs of our consumers. Looking ahead, we are confident in our ability to continue on the same trajectory, to achieve the eleventh consecutive year of growth for Nestlé Romania. I would like to thank the entire team once again for their daily efforts, tireless commitment, and positive impact on society", says Silvia Sticlea Country Manager, Nestlé România.

In addition to the financial results, Nestlé Romania continued its involvement in the community through awareness campaigns on food waste alongside the Food Bank, as well as educational projects in schools with the PRAIS Foundation. Students from 539 primary cycle schools in 32 counties participated in national educational projects promoting a healthy lifestyle - "I Live Healthy Too - SETS!" and environmental care - "The Blue Planet Counts on You - PACT!". Nestlé, in collaboration with Green Resources Management, the National Parents' Federation EDUPART (FNAP), and Sector 6 City Hall, organized the first project to inform and educate students about recycling symbols on packaging and the first discussions about flexible plastic packaging in schools, reaching over 350 middle and high school students. Additionally, in the first six months of the year, Nestlé donated 19 tons of food worth overCHF 95,000.

Business as a force for good

Launched just two years ago, Nestlé's income accelerator is already making a difference in addressing the challenges facing cocoa-farming families. In the first 18 months of the program's test at scale, cocoa yields of participating farmers increased by 32% after adopting the high-quality pruning practices learned through the program. Their household income also rose by 38%. This is according to a report published by the KIT Institute, an independent center of expertise and education for sustainable development. The KIT study, which was based on a sample of 1 500 income accelerator households, found that participating households had a higher rate of school enrollments than non-participating households. It confirmed that the program is helping to effectively mitigate diseases and pests on farms, facilitating income diversification, promoting financial access and empowering women.

The goal of Nestlé's income accelerator is to help close the living income gap of cocoa-farming families and to reduce the risk of child labor. The program rewards participating households for enrolling children in school; implementing good agricultural practices, like pruning; taking up regenerative agriculture activities, such as agroforestry; and diversifying their household income.

Nestlé introduced the first-ever KitKat bars made with cocoa grown by income accelerator farming families earlier this year. These KitKat bars aim to raise consumers' awareness about the sustainability of the cocoa used in the iconic bars and build consumer trust, as they showcase the traceability of Nestlé's cocoa. Consumer research shows that these efforts can help build brand loyalty and engagement1.

Nestlé's income accelerator has so far supported more than 10 000 families in Côte d'Ivoire. It is expanding to Ghana in 2024 to include a total of 30 000 families. By 2030, the program aims to reach an estimated 160 000 cocoa-farming families in Nestlé's cocoa supply chain. 

Full-year 2024 outlook updated: we expect organic sales growth of at least 3%.