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Nestlé reports “strong” organic growth in FY2023

22 Feb, 2024

Global food processor Nestlé has announced its full year results for 2023, reporting "strong" organic growth.

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Global food processor Nestlé has announced its full year results for 2023, reporting “strong” organic growth.

The company reported that organic growth reached 7.2%, with pricing of 7.5% and real internal growth (RIG) of -0.3%. Nestlé said that the growth was “broad-based” across geographies and categories.

Total reported sales were CHF 93 billion (approximately £83.5 billion), a 1.5% decrease from the previous year’s total of CHF 94.4 billion, while its underlying trading operating profit (UTOP) margin was 17.3%. The trading operating profit (TOP) margin was 15.6%, which the company said had increased by 160 basis points.

Free cash flow was CHF 10.4 billion (around £9.3 billion), an increase of CHF 3.8 billion following a significant reduction in working capital.

Mark Schneider, Nestlé CEO, said: “Unprecedented inflation over the last two years has increased pressure on many consumers and impacted demand for food and beverage products.

“In this challenging context, we delivered strong organic growth and solid margin improvement with increased marketing and other growth investments. Our free cash flow generation returned to historical levels.

“Looking to 2023, we are prioritising volume- and mix-led growth with increased brand support, as we enhance value for consumers through active innovation and renovation, premiumisation, affordability and more nutritious options.

“We will continue to focus capital allocation on our fast-growing billionaire brands, which enables us to deliver dependable growth while enhancing brand loyalty.

“To drive market share gains, our key priorities are delighting consumers through differentiated offerings and focusing on superior execution. We are confident that we have the right strategy, portfolio and capabilities to deliver on our 2025 targets.”

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