Nestlé achieves broad-based organic growth

According to the company, foreign exchange reduced sales by 2.0%, net divestitures reduced sales by 3.3%. Organic growth reached 7.6%, with real internal growth (RIG) of 6.0% and pricing of 1.6%. Growth was supported by continued momentum in retail sales, steady recovery of out-of-home channels, increased pricing and market share gains.
Mark Schneider, Nestlé CEO, commented: “We are pleased with Nestlé’s strong organic growth in the nine months, driven by broad-based contributions from most geographies and categories. The relentless focus of our teams on 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.”
Nestlé Confectionery generated sales of CHF 5.132 bn (9M-2020: CHF 4.713 bn) with high single-digit growth, supported by a strong sales development for KitKat. Organic growth of the product category confectionery reached 9.5%, with RIG of 7.9% and pricing of 1.5%.