- Organic growth reached 8.7%, with pricing of 9.5% and real internal growth (RIG) of – 0.8%. Growth was broad-based across geographies and categories.
- Total reported sales increased by 1.6% to CHF 46.3 billion (6M-2022: CHF 45.6 billion). Foreign exchange decreased sales by 6.7%. Net acquisitions had a negative impact of 0.4%.
- The underlying trading operating profit (UTOP) margin was 17.1%, up 20 basis points on a reported basis and 30 basis points in constant currency. The trading operating profit (TOP) margin increased by 120 basis points to 15.9% on a reported basis, reflecting one-off items in the prior year.
- Underlying earnings per share increased by 11.1% in constant currency and increased by 4.1% on a reported basis to CHF 2.43. Earnings per share increased by 10.6% to CHF 2.13 on a reported basis.
- Free cash flow increased by CHF 1.9 billion to CHF 3.4 billion, mainly reflecting lower inventory levels.
- Full-year 2023 outlook updated: we are increasing organic sales growth guidance to a range of 7% to 8%. The underlying trading operating profit margin is expected to be between 17.0% and 17.5%. Underlying earnings per share in constant currency is expected to increase between 6% and 10%.
Said Mark Schneider, Nestlé CEO of the results: “We pursued our strategic priorities with discipline and focus in a fast-evolving consumer environment. Based on the strong performance in the first half of the year we upgrade our organic sales growth outlook for 2023. At-home consumption post-COVID has now normalised, removing a growth drag on some of our categories. Out-of-home channels continue to see strong growth momentum.
“For the remainder of the year, we are confident that we will deliver a positive combination of volume and mix, an improvement in gross margin and a significant increase in marketing investments. Combined with ongoing portfolio management and optimisation as well as the continued implementation of our sustainability initiatives, we are well-positioned to grow and to generate value for our stakeholders.”
Full-year 2023 outlook updated: we are increasing organic sales growth guidance to a range of 7% to 8%. The underlying trading operating profit margin is expected to be between 17.0% and 17.5%. Underlying earnings per share in constant currency is expected to increase between 6% and 10%. For more visit nestle.com