Nestlé posts downturn in results, despite confectionery sales remaining resilient
Nestle's overall group performance has posted challenging results, yet confectionery sales, including for KitKat have remained resilient. Pic: Nestle
Nestlé has released its latest results, with the company’s nine-month figures revealing sales of CHF 67.1 billion, down 2.4% from 68.8 billion for the same period last year, amid a warning from CEO Laurent Freixe that ‘demand would remain soft’ given weakened consumer spending, writes Neill Barston.
As previously reported, global markets have continued to be impacted throughout 2024, with geopolitical tensions and uncertain economies resulting in levels of disposable income have been restricted in many locations – though the company’s confectionery interests registered an upturn in performance.
For its part, North America remained Nestle’s largest market, followed closely by Europe, and while its overall portfolio was down on last year, confectionery grew at a mid single-digit rate, led by KitKat and key local brands according to the business, though dairy reportedly performed negatively for the company.
Laurent Freixe, Nestlé CEO, comment on the results. He said: “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.
“Nestlé 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 Nestlé’s virtuous circle to sustain profitable growth over time, and we have exceptional people to make this happen.”
