Press Release: Nestle: Nestlé reports nine-month -2-

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By product category, the largest contributor to growth was Purina PetCare, which delivered mid single-digit growth, driven by premium brands Purina ONE, Gourmet and Pro Plan. Coffee delivered mid single-digit growth, led by Nescafé soluble coffee and Starbucks products. Confectionery posted mid single-digit growth, fueled by continued momentum for KitKat and key local brands. Sales in water grew at a low single-digit rate, supported by the relaunch of Perrier. Nestlé Professional delivered mid single-digit growth, led by beverage solutions. Infant Nutrition posted slightly negative growth, reflecting a category slowdown. Culinary reported slightly negative growth.

Zone Asia, Oceania and Africa (AOA)

-- 9M-2024: 3.6% organic growth: 0.8% RIG; 2.8% pricing.

Sales Sales Organic Net Foreign Reported

9M-2024 9M-2023 RIG Pricing growth M&A exchange growth

Zone CHF 12.5 CHF 13.2

AOA bn bn 0.8% 2.8% 3.6% 0.0% - 8.7% - 5.2%

Organic growth was 3.6%. RIG was 0.8%, reflecting ongoing consumer hesitancy toward global brands, linked to geopolitical tensions. Pricing was 2.8%. Foreign exchange reduced sales by 8.7%. Reported sales decreased by 5.2% to CHF 12.5 billion. By geography, the key growth drivers were Central and West Africa, the Philippines and Thailand. The Zone achieved market share gains in confectionery, with losses in dairy and culinary.

By product category, coffee delivered mid single-digit growth, driven by Nescafé, particularly in ready-to-drink offerings. Culinary delivered high single-digit growth, fueled by strong sales momentum and innovation for Maggi cooking solutions. Sales in Infant Nutrition grew at a mid single-digit rate, with continued momentum for NAN and S-26 as well as the affordable nutrition range Lactogen. Sales for Nestlé Professional grew at a high single-digit rate across most geographies and categories, underpinned by customer acquisition. Confectionery reported low single-digit growth, with continued momentum for KitKat supported by new product launches. Purina PetCare delivered mid single-digit growth, led by Felix and Purina One. Dairy posted slightly positive growth.

Zone Latin America

-- 9M-2024: 1.9% organic growth: - 0.7% RIG; 2.5% pricing.

Sales Sales Organic Net Foreign Reported

9M-2024 9M-2023 RIG Pricing growth M&A exchange growth

Zone

Latin CHF 8.9 CHF 9.1

America bn bn - 0.7% 2.5% 1.9% 0.0% - 4.2% - 2.3%

Organic growth was 1.9%. RIG was - 0.7%, becoming more negative in the third quarter, reflecting soft consumer demand and customer inventory reductions. Pricing was 2.5%. Foreign exchange had a negative impact of 4.2%. Reported sales decreased by 2.3% to CHF 8.9 billion. Growth in the Zone was driven by robust sales momentum in Brazil and Mexico, partially offset by weaker performance in other markets. The Zone achieved market share gains in chocolate, portioned coffee and culinary, with losses in dairy and soluble coffee.

By product category, confectionery grew at a mid single-digit rate, driven by key local brands, particularly Garoto as well as KitKat. Nestlé Professional grew at a sustained double-digit rate, fueled by continued customer expansion. Culinary delivered low single-digit growth, driven by Maggi. Coffee posted low single-digit growth, led by Nescafé, with strong growth for Nescafé Dolce Gusto. Purina PetCare posted flat growth, supported by Felix and Friskies. Infant Nutrition and dairy posted negative growth, with robust demand for NAN infant formula more than offset by a sales decline in Nido.

Zone Greater China

-- 9M-2024: 2.5% organic growth: 3.9% RIG; - 1.5% pricing.

Sales Sales Organic Net Foreign Reported

9M-2024 9M-2023 RIG Pricing growth M&A exchange growth

Zone

Greater CHF 3.6 CHF 3.6

China bn bn 3.9% - 1.5% 2.5% 0.2% - 4.7% - 2.0%

Organic growth was 2.5%. RIG was 3.9%, increasing in the third quarter supported by new product launches and by improved momentum in Infant Nutrition. Pricing was - 1.5%, reflecting a low inflation environment for the food & beverage industry. Foreign exchange had a negative impact of 4.7%. Reported sales decreased by 2.0% to CHF 3.6 billion. The Zone drove market share gains in soluble coffee, Infant Nutrition and confectionery, with losses in culinary and dairy.

By product category, Infant Nutrition was the largest contributor to growth, with mid single-digit growth, driven by NAN and improved sales for illuma. Coffee delivered high single-digit growth, driven by Nescafé ready-to-drink and soluble offerings. Sales of confectionery grew at a mid single-digit rate, driven by Shark Wafer and KitKat. Nestlé Professional and Culinary reported positive growth, with a slow-down for out-of-home channels. Sales in Purina PetCare continued to grow at a double-digit rate, building on new product launches and continued e-commerce momentum for Purina Pro Plan and Friskies. Dairy posted negative growth, reflecting a sharp market slowdown in dairy-based categories.

Nestlé Health Science

-- 9M-2024: 3.8% organic growth: 3.0% RIG; 0.8% pricing.

Sales Sales Organic Net Foreign Reported

9M-2024 9M-2023 RIG Pricing growth M&A exchange growth

Nestlé

Health CHF 4.9 CHF 4.9

Science bn bn 3.0% 0.8% 3.8% 0.5% - 3.0% 1.3%

Organic growth was 3.8%, and reached double digits in the third quarter. RIG was 3.0%, accelerating strongly in the third quarter driven by increased product availability. Net acquisitions increased sales by 0.5%. Foreign exchange negatively impacted sales by 3.0%. Reported sales increased by 1.3% to CHF 4.9 billion. By geography, North America delivered low single-digit growth. Europe delivered high single-digit growth, while other regions combined saw positive growth.

Growth in vitamins, minerals and supplements was broadly flat in the first nine months, with double-digit growth in the third quarter. The recovery plan is on-track, and the business has started retaking market share. Active nutrition saw low single-digit growth, with strong sales contribution from Orgain. Medical Nutrition delivered close to double-digit growth, with continued market share gains. Growth was driven by strong sales momentum for adult medical care products, particularly Peptamen, Resource and Vitaflo. Sales for gastrointestinal products continued to grow at a double-digit rate.

Nespresso

-- 9M-2024: 1.8% organic growth: 1.3% RIG; 0.5% pricing.

Sales Sales Organic Net Foreign Reported

9M-2024 9M-2023 RIG Pricing growth M&A exchange growth

CHF 4.6 CHF 4.6

Nespresso bn bn 1.3% 0.5% 1.8% 0.2% - 2.6% - 0.7%

Organic growth was 1.8%. RIG was 1.3%. Pricing was 0.5%. Foreign exchange negatively impacted sales by 2.6%. Reported sales decreased by 0.7% to CHF 4.6 billion. By geography, sales in North America grew at a mid single-digit rate with market share gains. Europe posted slightly negative growth in a market that remains competitive.

Growth was driven by the Vertuo system, with continued broad-based sales momentum. Out-of-home channels continued to generate robust growth, fuelled by the further adoption of the Momento system.

Outlook

Full-year 2024 outlook updated: Given the consumer environment and further actions to reduce customer inventories in the fourth quarter, full-year guidance has been updated. Organic sales growth is now expected to be around 2%, in line with the first nine months. Underlying trading operating profit margin is expected to be at around 17.0%. Underlying earnings per share growth in constant currency is expected to be broadly flat.

Annex

Nine-month sales overview by operating segment

Zone Zone Zone Nestlé

Total North Zone Zone Latin Greater Health Other

Group America Europe AOA America China Science Nespresso Businesses

Sales

9M-2024

(CHF m) 67 148 18 524 13 900 12 542 8 913 3 550 4 915 4 586 218

Sales

9M-2023

(CHF m) 68 829 19 027 14 144 13 223 9 139 3 624 4 850 4 617 205

Real

internal

growth

(RIG) 0.5% - 0.9% 0.8% 0.8% - 0.7% 3.9% 3.0% 1.3% 8.6%

Pricing 1.6% 0.6% 2.5% 2.8% 2.5% - 1.5% 0.8% 0.5% 1.3%

Organic

growth 2.0% - 0.3% 3.3% 3.6% 1.9% 2.5% 3.8% 1.8% 9.8%

Net M&A - 0.3% 0.0% - 2.2% 0.0% 0.0% 0.2% 0.5% 0.2% 0.0%

Foreign

exchange - 4.1% - 2.3% - 2.9% - 8.7% - 4.2% - 4.7% - 3.0% - 2.6% - 3.3%

Reported

sales

growth - 2.4% - 2.6% - 1.8% - 5.2% - 2.3% - 2.0% 1.3% - 0.7% 6.6%

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October 17, 2024 01:00 ET (05:00 GMT)