SWITZERLAND – Food giant Nestlé has posted double-digit growth in Middle East Asia and Africa as the Zone Asia, Oceania and Africa (AOA) in general achieved a 9.3% organic growth in the first half-year financial results.
In the Zone, South-East Asia posted mid-single-digit growth and Oceania recorded high single-digit growth.
By product category, Infant Nutrition was the largest growth contributor, led by Lactogen, NAN, and Cerelac.
Culinary recorded double-digit growth, based on distribution expansion and strong execution for Maggi. Coffee saw high single-digit growth, with continued robust demand for Nescafé and Starbucks products.
The recently launched Starbucks ready-to-drink products resonated strongly with consumers, the company pointed out.
Confectionery reported double-digit growth, fueled by strong momentum for KitKat. Purina PetCare saw high single-digit growth, led by Supercoat, Purina ONE and Felix. Cocoa and malt beverages posted low single-digit growth, supported by Milo powder and ready-to-drink products.
The overall Group’s organic growth reached 8.7%, with pricing of 9.5% and real internal growth (RIG) of – 0.8%. Total reported sales increased by 1.6% to CHF 46.3 billion.
Nestlé Health Science has an organic growth was 3.5% with a return to growth from vitamins, minerals, and supplements, at a pricing of 5.3% while Nespresso had an organic rise of 4.5% after a 3.7% pricing.
Mark Schneider, Nestlé CEO, explained that the company pursued its strategic priorities with discipline and focus in a fast-evolving consumer environment, adding that At-home consumption post-COVID has now normalized, and 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,” he said.
“Combined with ongoing portfolio management and optimization as well as the continued implementation of our sustainability initiatives, we are well-positioned to grow and to generate value for our stakeholders.”
Infant Nutrition posted double-digit growth as Dairy reported high single-digit growth, with strong demand for coffee creamers and affordable fortified milks.
Confectionery recorded double-digit growth, fueled by a strong sales development for KitKat. Prepared dishes and cooking aids posted mid-single-digit growth, led by Maggi.
The e-commerce channel contributed 6.5% of the quarterly sales and continued the growth momentum driven by quick commerce.
The Swiss conglomerate has increased its full-year guidance, expecting the organic sales growth guidance to a range of 7% to 8%.
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