Nestlé’s total sales increased by nine per cent in H1 FY22, driven by a strong performance by premium pet food brands Purina Pro Plan, Purina One, and Fancy Feast.
Total sales increased to AUD $68.6 billion from January to June 2022, with Mark Schneider, CEO of Nestlé, stating that the company is focused on creating shared value over both the short and long term.
“Growing food insecurity around the world and heightened climate concerns, following an increase in unusual weather patterns, underlines the importance of this strategic direction. Good for you and good for the planet are the two key strategic pillars that our company pursues in an unwavering manner, even in the face of significant short-term challenges.”
While revealing that Purina PetCare was the largest contributor to organic growth, the company did not release numbers for its pet division, but stated there is continued momentum for science-based and premium brands as well as veterinary products.
In Zone Asia, Oceania, and Africa (AOA) total organic growth reached 8.2 per cent, with Purina PetCare recoding high single-digit growth and continued momentum for Purina One, Purina Pro Plan, and Fancy Feast.
“In the first half of the year, we delivered strong organic growth and a significant increase in underlying earnings per share. Our local teams implemented price increases in a responsible manner. Volume and product mix were resilient, based on our strong brands, differentiated offerings and leading market positions.
“We limited the impact of unprecedented inflationary pressures and supply chain constraints on our margin development through disciplined cost control and operational efficiencies. At the same time, investments behind capital expenditure, digitalization and sustainability increased significantly,” said Schneider.