Global food processor Nestlé has released its results for the first half of 2024, reporting a return to real internal growth.
The processor experienced organic growth of 2.1%, with positive real internal growth (RIG) of 0.1% for the first half and 2.2% for the second quarter, improving in all Zones and categories.
It reported total sales of CHF 45 billion (£39,498 million), down 2.7%. Net profit was flat at CHF 5.6 billion (£4,914 million).
Its trading operating profit (TOP) margin increased 50 basis points to 16.4% on a reported basis, while underlying trading operating profit (UTOP) increased 30 basis points to 17.4%.
Nestlé said that sales in the confectionary category grew at a high single-digit rate, led by KitKat and local brands. In its culinary category, the Maggi brand delivered “robust growth”, which was offset by frozen food in North America.
Organic growth in retail sales was 2%, and e-commerce sales grew by 10.6%, reaching 18.2% of total Group sales.
Mark Schneider, Nestlé CEO, said: “Positive real internal growth is back. We delivered improved volume and mix growth across the Group in the second quarter.
“Looking ahead to the remainder of the year, we will continue to drive RIG by launching innovations that address consumer trends and growing our large iconic brands. At the same time, we have seen pricing come down faster than expected. Therefore, we consider it prudent to adjust our guidance for the year, with organic sales growth now expected to be at least 3%.”
Nestlé said it expects organic sales growth of at least 3%. It also said that the underlying earnings per share in constant currency is expected to increase at a “mid single-digit rate”. However, it expects its underlying trading operating profit margin to experience a “moderate increase”, so its guidance remains unchanged.
