Purina PetCare was Nestlé’s largest contributor to organic growth in 2022, driven by strong momentum by premium brands such as Purina Pro Plan, Purina ONE, and Fancy Feast.
Total group sales increased by 8.4 per cent to $148 billion and organic growth reached 8.3 per cent. Despite this, Nestlé’s earnings decreased by 43.5 per cent, which was mainly put down to the 2021 gain on the disposal of L’Oreal shares.
Mark Schneider, CEO of Nestlé, said 2022 brought many challenges and tough choices for families, communities, and businesses.
“Inflation surged to unprecedented levels, cost of living pressures intensified, and the effects of geopolitical tensions were felt around the world.
“The entire Nestlé team demonstrated dependability, as we navigated this difficult environment. Organic growth was solid, margins continued to be resilient, and our underlying earnings per share development was strong. At the same time, we ensured access to nutritious products and affordable offerings globally.”
Sales of Purina PetCare grew in double digits across most zones including Europe, North America, Latin America, and Greater China. In the Asia, Oceania, and Africa zone Purina PetCare posted single-digit growth, with the culinary category, led by Maggi, being the largest contributor.
Looking to 2023, Nestlé expects organic sales growth between six and eight per cent and an increase in earnings between six and 10 per cent.
“We expect another year of robust organic growth, with a focus on restoring our gross margin, stepping up marketing investments and increasing free cash flow. Nestlé’s value creation model puts us in a strong position to achieve our 2025 targets and to generate reliable, sustainable shareholder returns,” said Schneider.