Press Release: Nestle: Nestlé reports full-year -3-

Zone Asia, Oceania and Africa (AOA)

-- 8.3% organic growth: 0.3% RIG; 8.0% pricing.

-- The Zone's underlying trading operating profit margin increased by 60

basis points to 23.5%.

Sales Sales Organic UTOP UTOP Margin Margin

2023 2022 RIG Pricing growth 2023 2022 2023 2022

CHF CHF CHF CHF

Zone 17.5 18.5 4.1 4.2

AOA bn bn 0.3% 8.0% 8.3% bn bn 23.5% 22.9%

Organic growth was 8.3%, with 0.3% RIG. Pricing increased to 8.0%, with broad-based contributions from all geographies and categories. Foreign exchange reduced sales by 13.5%, impacted by significant currency depreciation. Reported sales in Zone AOA decreased by 5.2% to CHF 17.5 billion.

Growth in Zone AOA was supported by pricing as well as continued momentum of e-commerce and out-of-home channels. The Zone saw market share gains in confectionery and coffee.

South-East Asia posted mid single-digit growth, led by the Philippines, with strong sales developments for Nescafé and Maggi. South Asia recorded strong double-digit growth across most categories. Growth in India was based on continued distribution expansion and new product launches, with strong momentum for Maggi, KitKat and Nescafé. Middle East and Africa saw double-digit growth, with particular strength for affordable offerings in Maggi, NAN and Milo. Japan reported mid single-digit growth, led by Purina PetCare, KitKat and ready-to-drink Nescafé. South Korea posted high single-digit growth, fueled by Starbucks products. The new Starbucks soluble coffee offering resonated strongly with consumers. Oceania recorded high single-digit growth, supported by innovation for KitKat, Purina PetCare and Nescafé.

By product category, Infant Nutrition was the largest growth contributor, led by NAN, Lactogen and Cerelac. Culinary recorded double-digit growth, with continued strength for Maggi. Coffee saw high single-digit growth, with robust demand for Nescafé and Starbucks products, particularly for ready-to-drink offerings. Ambient dairy posted mid single-digit growth, based on increased focus on products with functional benefits. Sales for Nestlé Professional grew at a strong double-digit rate across most geographies and categories, supported by channel penetration and customer acquisition. Confectionery reported high single-digit growth, fueled by strong momentum for KitKat. Purina PetCare saw mid single-digit growth, led by Purina ONE, Supercoat and Felix.

The Zone's underlying trading operating profit margin increased by 60 basis points. Pricing, disciplined cost control and portfolio optimization more than offset the impact of input cost inflation and higher advertising and marketing expenses.

Zone Latin America

-- 9.2% organic growth: 0.3% RIG; 8.9% pricing.

-- The Zone's underlying trading operating profit margin decreased by 50

basis points to 20.7%.

Sales Sales Organic UTOP UTOP Margin Margin

2023 2022 RIG Pricing growth 2023 2022 2023 2022

Zone CHF CHF CHF CHF

Latin 12.2 11.8 2.5 2.5

America bn bn 0.3% 8.9% 9.2% bn bn 20.7% 21.2%

Organic growth was 9.2%, with pricing of 8.9%. RIG was 0.3%, turning positive in the second half. Foreign exchange had a negative impact of 5.8%. Reported sales in Zone Latin America increased by 3.2% to CHF 12.2 billion.

Zone Latin America recorded strong growth across all geographies and product categories. Growth was supported by pricing, strong operational execution and continued momentum for out-of-home channels. The Zone saw market share gains in pet food, Infant Nutrition and culinary.

Brazil posted strong double-digit growth, with continued momentum for confectionery, Infant Nutrition and beverages. Within beverages, Nescafé posted strong sales growth driven by portioned coffee. Mexico reported high single-digit growth, with strong sales developments for dairy, coffee and Nestlé Professional.

By product category, confectionery was the largest growth contributor, reflecting strong demand for KitKat and key local brands. In this category, Chocobiscuits saw particularly strong growth. Coffee reported high single-digit growth, led by Nescafé soluble and ready-to-drink coffee. Dairy posted high single-digit growth, supported by dairy culinary solutions and fortified milks. Infant Nutrition saw high single-digit growth, based on solid momentum for NAN infant formula, Mucilon infant cereal and Materna products. Sales for Nestlé Professional grew at a strong double-digit rate, with continued customer expansion for branded coffee solutions. Culinary posted high single-digit growth, based on new product launches and further traction for Recetas Nestlé, the largest online recipe platform in Latin America. Purina PetCare saw mid single-digit growth, following a high base of comparison in 2022.

The Zone's underlying trading operating profit margin decreased by 50 basis points. One-off items in the prior year more than offset pricing and cost efficiencies.

Zone Greater China

-- 4.2% organic growth: 2.5% RIG; 1.7% pricing.

-- The Zone's underlying trading operating profit margin increased by 40

basis points to 16.5%.

Sales Sales Organic UTOP UTOP Margin Margin

2023 2022 RIG Pricing growth 2023 2022 2023 2022

Zone CHF CHF CHF CHF

Greater 5.0 5.4 0.8 0.9

China bn bn 2.5% 1.7% 4.2% bn bn 16.5% 16.1%

Organic growth was 4.2%, with RIG of 2.5% and pricing of 1.7%. Foreign exchange had a negative impact of 10.2%. Reported sales in Zone Greater China decreased by 5.9% to CHF 5.0 billion.

Growth in Zone Greater China was supported by strong sales developments for out-of-home businesses and e-commerce momentum. The Zone saw market share gains in soluble coffee, pet food and confectionery.

By product category, Nestlé Professional was the largest growth contributor, supported by innovation and distribution expansion. Culinary posted high single-digit growth, with increased demand for Totole in out-of-home channels and new product launches. Confectionery recorded mid single-digit growth, led by Shark wafer and Hsu Fu Chi. Infant Nutrition saw positive growth, led by NAN hypoallergenic and specialty offerings. In the fourth quarter, the Zone launched a growing-up milk solution for illuma containing human milk oligosaccharides (HMOs). Sales of healthy aging products grew at a double-digit rate, supported by the launch of N3 milk, a unique science-based innovation that is as nutritious as milk and low in lactose. Coffee reported low single-digit growth, supported by ready-to-drink offerings. Sales for Purina PetCare grew at a double-digit rate, based on new product launches and strong e-commerce momentum.

The Zone's underlying trading operating profit margin increased by 40 basis points, supported by favorable mix and disciplined cost control.

Nestlé Health Science

-- 1.6% organic growth: -3.2% RIG; 4.8% pricing.

-- The underlying trading operating profit margin decreased by 160 basis

points to 12.0%.

Sales Sales Organic UTOP UTOP Margin Margin

2023 2022 RIG Pricing growth 2023 2022 2023 2022

Nestlé CHF CHF CHF CHF

Health 6.5 6.6 0.8 0.9

Science bn bn - 3.2% 4.8% 1.6% bn bn 12.0% 13.6%

Organic growth was 1.6%, with pricing of 4.8%. RIG was -3.2%, impacted by a temporary supply constraint for the vitamins, minerals and supplements business. Net acquisitions increased sales by 3.1%, largely related to the consolidation of Orgain from April 2022. Foreign exchange negatively impacted sales by 6.2%. Reported sales in Nestlé Health Science decreased by 1.6% to CHF 6.5 billion.

Vitamins, minerals and supplements saw negative growth. Sales in the second half decreased following an IT integration issue encountered during the consolidation of U.S. packaging sites. The recovery is taking longer than expected as the extent of the issue was deeper and more complex than initially thought. The resulting supply constraints are expected to be fully resolved by the end of the first half of 2024, with an acceleration of growth expected in the second half of the year. Vitamins, minerals and supplements brand Pure Encapsulations was not affected by the supply issue and saw double-digit growth.

Active Nutrition reported mid single-digit growth, with robust sales developments for Orgain and Vital Proteins.

Medical Nutrition recorded strong double-digit growth, with market share gains across all segments. Growth was led by adult medical care products, pediatric products and Vitaflo. The gastrointestinal portfolio, including Vowst and Zenpep, saw strong double-digit growth.

By geography, North America saw a sales decrease. Europe reported mid single-digit growth. Other regions combined posted high single-digit growth.

The underlying trading operating profit margin of Nestlé Health Science decreased by 160 basis points, as a result of the impact of temporary supply constraints.

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February 22, 2024 01:15 ET (06:15 GMT)