In a release on October 20th, multinational food manufacturer Nestle, based in Switzerland, reported a 2.2 percent increase in revenue for the first nine months of Fiscal 2021.  Revenue attained $68.99 billion compared to $67.48 billion for the first three quarters of FY2020.  Organic growth attained 7.6 percent with real internal growth of 6.0 percent and an increase in unit prices of 1.6 percent.  Sales value was impacted by a two percent adverse foreign exchange adjustment. 

In commenting on results, Mark Schneider, CEO, stated “We are pleased with Nestle’s strong organic growth in the nine months driven by broad-based contributions for most geographies and categories. The focus of our team’s local execution and agility enabled us to navigate input cost inflation and supply chain constraints.  In the third quarter we increased pricing in a responsible manner while maintaining strong, real internal growth.  Investments in innovation, digitalization, and sustainability further supported growth by enhancing the relevance and differentiation of our offerings.”

Schneider emphasized the Nestle responsibility to contribute to sustainability announcing a plan to support a transition to regenerative agricultural and food systems.  Nestle intends working with farmers around the world to improve soil health, conserve water, and increase biodiversity. 

In providing guidance for FY2021, the company expects full-year organic sales growth of between six percent and seven percent with a trading operating profit margin of 17.5 percent.

A breakdown of sales by product segment includes Powdered and Liquid Beverages, 27.7 percent; Bottled Water, 5.1 percent; Milk Products and Ice Cream, 12.4 percent; Nutrition and Health, 15.2 percent; Prepared Dishes and Cooking Aids, 14.0 percent; Confectionary, 8.1 percent and Pet Care 17.9 percent.  Product categories with the highest sales growth included Pet Care at 9.9 percent, Powdered and Liquid Beverages, 8.6 percent, and Confectionary 7.9 percent.