Half Year 2024 Nestle SA Earnings Call Transcript
Key Points
- Nestle SA (NSRGF) delivered a strong real internal growth recovery, driven by market share gains, volume growth, and mix improvement.
- The company saw broad-based growth across all zones and categories, particularly in billionaire brands and e-commerce.
- Nestle Health Science business showed significant progress, setting up for a strong second half.
- The company is focused on delivering for consumers while building for long-term sustained and profitable growth.
- Nestle SA (NSRGF) is gaining market share in e-commerce globally, with strong execution in digital channels.
- There is significant value-seeking behavior among consumers, leading to increased promotional intensity.
- Commodity costs, particularly for coffee and cocoa, are expected to rise in the second half, putting pressure on margins.
- Organic sales growth for key businesses like pet care, coffee, nutrition, and Nestle Health Science was lower than expected.
- The company faces challenges in maintaining competitive price gaps in a high promotional environment.
- Economic caution and consumer hesitancy in China have led to more intense price competition and weaker consumer sentiment.
Good afternoon, and good morning to everyone. This is Luca Borlini, Head of Nestlé Investor Relations. Thank you for joining the Q&A session for Nestlé's first-half 2024 sales. With me today are Nestlé's CEO, Mark Schneider; and CFO, Anna Manz. We have made available our prepared remarks at 7:00 AM Central European Time, together with our first-half press release and presentation on the Nestlé Investor Relations website. I trust you have had all the time to review these materials and listen to the recording, therefore we can go straight to the question-and-answer session.
Before we begin, please take note of our usual disclaimer. With that reminder given, let us begin the session. The line for questions from financial analysts is now open. Please remember to limit yourselves to no more than two questions.
Maybe before going into the question, Mark would like to start with a short introductory remarks.
Luca, thank you, and a warm welcome to our conference call participants.
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