Nestle, the world’s largest food company, has just released its performance report for the first three quarters of 2020. According to the financial report, in the first nine months of this year, Nestle group’s sales revenue reached 61.912 billion Swiss francs (about 454.744 billion yuan), achieving an organic growth of 3.5%. “Nestle has maintained resilience in a difficult and volatile environment,” Nestle chief executive mark Schneider said in a briefing today. Our employees acted responsibly and quickly to mitigate the impact of the global pandemic and quickly adapt to changing consumer needs. ” The snack generation noted that nestle also specifically talked about the performance of China’s market and that the strategic review of Yinlu was carried out as expected. Now, let’s have a look.
Purina pet food contributed the most
Let’s take a look at Nestle’s overall performance. According to the financial report data, in the first three quarters, Nestle group’s organic growth was 3.5%, of which the actual internal growth was 3.3%, and the pricing contribution rate was 0.2%. By the third quarter of this year, Nestle’s organic growth reached 4.9%. “Strong organic growth is broad-based, supported by continued growth in the Americas, Purina petcare and Nestle Health Sciences, and accelerated growth in the coffee business in the third quarter.” Schneider said in the briefing.
From the perspective of categories, Nestle pointed out that the biggest contributors to the growth were Purina pet food and its high-end brands, Purina one and Felix. Equally strong were vegetarians and vegetarians and Nestle Health Sciences, both of which achieved double-digit growth. Nestle pointed out in the financial report that the growth of vegetarians and vegetarians is supported by the launch of new products and the continuous expansion of distribution, while the growth of Nestle health science reflects the increasing demand of consumers for products supporting health and immune system.
Sweet earth, Nestle’s vegetable meat brand
In addition, dairy products and coffee also achieved good growth.
雀巢财报指，乳制品实现了高个位数增长，由对强化牛奶和家庭烘焙产品的需求增加拉动。而咖啡则录得了中个位数增长，由星巴克产品，浓遇咖啡 （Nespresso）和 雀巢咖啡（Nescafé）的强劲消费需求推动。
“In terms of categories, demand for home consumption, trusted brands and products with health benefits remains strong.” Nestle said in the notice.
In addition, sales of candy and drinking water fell as outdoor consumption was hit by the epidemic. Nestle pointed out that this decline reflects the two categories in outdoor channels and mobile consumption in the high proportion. “Outdoor channels are still negative growth, but the decline in sales slowed down in the third quarter.” Nestle said candy and drinking water also improved in the third quarter. Snack food agents also noted that during the reporting period, Nestle’s e-commerce sales soared by 47.6%, accounting for 12.3% of Nestle group’s total sales. “Coffee, Purina pet food, nutrition and health science were all the main drivers of growth, with all other categories maintaining strong momentum.” According to the circular.
China’s growth has turned positive
Let’s take a look at the performance of the Chinese market and its AOA region. In the first nine months of this year, Nestle achieved an income of 15.251 billion Swiss francs (about 112.019 billion yuan) in the AOA region in the first nine months of this year, with a flat organic growth.
Nestle also revealed in the financial report: “Wyeth infant formula sales decline continues to slow. Zhenlang brand, which is produced locally, is being promoted as planned. ” According to xiaoshidai, zhenlang, released in June this year, is a new super high-end brand launched by Wyeth after nearly 10 years. It is regarded by Wyeth as a new chip to help the market sink in China. At that time, Wyeth had revealed that zhenlang was equipped with a new sales team of grounded gas. (zhenlang sales) team members have local brand operation experience, strong execution and flexible decision-making space.
The review of Yinlu was carried out as expected
Following the announcement in the semi annual report that the review completion time of Yinlu business was slightly delayed, Nestle pointed out in the circular today that the strategic review of China’s Yinlu peanut milk and Babao porridge business, as well as some North American drinking water business, was carried out in full accordance with the expected progress, and the two reviews are expected to be completed in early 2021.
今天，雀巢就在谈及产品组合管理时列出了健康科学部门在今年完成的多笔并购，包括美国胶原蛋白品牌 Vital Proteins的多数股权、 专营医疗食品和膳食补充剂的IM HealthScience公司、以及食物过敏疗法“新贵”Aimmune Therapeutics。
Nestle Health Sciences acquired
in recent years
“The latest addition of zenprep, vital proteins and aimmune therapeutics is a further step forward in expanding our range of nutritional and health products.” Schneider said in the briefing.
Raise annual growth forecast
For Nestle this three quarters, today, many foreign cable to give a high degree of attention.
Reuters noted that nestle today raised its forecast for organic sales growth in 2020 (the previous target was 2% – 3%), and pointed out that the third quarter’s performance exceeded market expectations. Nestle’s response to the new outbreak has been better than that of its peers, thanks to its extensive product mix, which offsets the decline in food and beverage consumption in restaurants, coffee shops and other occasions, Reuters said.
Today, Mr. Peng believes that Nestle’s performance has benefited from people spending more at home, and they have chosen more famous brands, such as using Starbucks capsules operated by Nestle on espresso coffee machines. In addition, some analysts believe that as more people keep pets during the epidemic, this has led to the growth of pet food.