As part of its 2024 financial statement presentation (read EFA News ), Nestlé also reported organic growth figures by product. Coffee was the largest contributor with mid-single-digit growth, driven by the three brands Nescafé, Nespresso and Starbucks. Confectionery sales grew at a mid-single-digit rate, led by KitKat and key local brands. PetCare posted low-single-digit growth, driven by continued momentum from science-based premium brands Purina ProPlan, Purina One and Friskies.

Nestlé Health Science achieved mid-single digit growth, headlined by double digit growth in the second half of the year. Mineral waters posted low single digit growth, with solid growth in Sanpellegrino and supported by the successful launch of Maison Perrier. Infant Nutrition sales grew at a low single digit rate, supported by continued momentum in NANe Lactogen. Dairy declined, as a decline in coffee creamers and ambient dairy products more than offset growth in convenient milks and dairy-based culinary solutions. Culinary declined overall, with mid-single digit growth in Maggi more than offset by a decline in frozen foods in North America.

By channel, organic growth in retail sales was 2.1%. Organic growth in out-of-home channels was 3.2%. E-commerce sales grew organically by 11.3%, reaching 18.9% of total Group sales.

Gross profit remained unchanged at EUR 42.7 billion and the gross profit margin increased by 80 bps to 46.7%. The gross profit margin reached 47.2% in the first half, before falling by 90 bps sequentially to 46.3% in the second half, driven by higher input costs for coffee and cocoa.

Distribution expenses as a percentage of sales were unchanged from the prior year at 8.3%. Marketing and administrative expenses as a percentage of sales increased 90 bps to 19.8%. This included: advertising and marketing expenses as a percentage of sales up 40 bps to 8.1%, as we began to increase capital expenditure; and administrative expenses as a percentage of sales up 50 bps to 11.7% of sales, largely reflecting higher labor costs, the appreciation of the Swiss franc and one-time items. Research and development expenses as a percentage of sales were unchanged from the prior year at 1.8%.
Underlying trading operating profit was CHF 15.7 billion, down 2.2% on a reported basis and up 1.3% at constant currency. The underlying trading operating profit margin was 17.2%, down 10 bps on a reported basis and unchanged at constant currency.

Restructuring and other net trading items were CHF 1.1 billion compared to CHF 1.5 billion in the prior year, the decrease being primarily due to lower restructuring costs. Operating trading profit increased 0.8% to CHF 14.6 billion. Gross operating margin reached 16.0%, up 40 basis points on a reported basis and 50 basis points at constant currency.

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