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

Organic growth was 3.6%, with pricing of 4.1% and RIG of -0.4%. Foreign exchange reduced sales by 13.0%, impacted by significant currency depreciation. As a result, reported sales in Zone AOA decreased by 9.4% to CHF 4.2 billion. By geography, the key growth drivers were Central and West Africa, India and the Philippines. In these markets, affordable offerings fueled growth, led by Maggi, Lactogen and Nescafé. The Zone saw market share gains in confectionery, coffee and pet food, with losses in dairy.

By product category, Infant Nutrition was the largest growth contributor, led by NAN and Lactogen. Culinary achieved high single-digit growth, fueled by distribution expansion and innovation for Maggi across product segments. Coffee delivered mid single-digit growth, with continued robust demand for Nescafé. Sales in Nestlé Professional grew at a high single-digit rate across geographies and categories, fueled by distribution expansion. Confectionery reported low single-digit growth, with strong momentum for KitKat. Dairy posted close to flat growth.

Zone Latin America

-- 3.1% organic growth: -0.8% RIG; 3.9% pricing.

Sales Sales Organic Net Foreign Reported

3M-2024 3M-2023 RIG Pricing growth M&A exchange Growth

Zone

Latin CHF 3.1 CHF 3.0

America bn bn - 0.8% 3.9% 3.1% - 0.1% - 1.5% 1.5%

Organic growth was 3.1%, with pricing of 3.9% and RIG of -0.8%. Foreign exchange had a negative impact of 1.5%. Net divestitures decreased sales by 0.1%. On March 1st 2024, the Group completed the acquisition of a majority stake in Grupo CRM, a premium chocolate player in Brazil. Reported sales in Zone Latin America increased by 1.5% to CHF 3.1 billion. Growth was led by Brazil, with continued momentum for Garoto, KitKat and Nescafé. Mexico delivered low single-digit growth, based on strong sales momentum for Purina PetCare, La Lechera and Carlos V. The Zone achieved market share gains in pet food, Infant Nutrition, and portioned coffee, with losses in dairy, following portfolio optimization.

By product category, confectionery was the largest growth contributor, with strong momentum for KitKat and key local brands. Sales for Nestlé Professional grew at a double-digit rate, with continued customer expansion. Culinary delivered low single-digit growth, based on strong demand and distribution expansion for Maggi. Purina PetCare saw low single-digit growth, supported by Alpo and Felix. Dairy sales grew at a low single-digit rate, with strong growth for La Lechera. Infant Nutrition and Coffee posted sales decreases, following a high base of comparison in 2023.

Zone Greater China

-- 3.7% organic growth: 2.1% RIG; 1.5% pricing.

Sales Sales Organic Net Foreign Reported

3M-2024 3M-2023 RIG Pricing growth M&A exchange Growth

Zone

Greater CHF 1.2 CHF 1.3

China bn bn 2.1% 1.5% 3.7% 0.2% - 9.8% - 5.9%

Organic growth was 3.7%, with pricing of 1.5% and RIG of 2.1%. Foreign exchange had a negative impact of 9.8%. Reported sales in Zone Greater China decreased by 5.9% to CHF 1.2 billion. Growth was driven by continued momentum in out-of-home and e-commerce channels. The Zone saw market share gains in soluble coffee, confectionery, and pet food, with losses for Wyeth infant nutrition products.

By product category, confectionery was the largest growth contributor, led by Hsu Fu Chi and Shark Wafer. Nestlé Professional achieved double-digit growth, fueled by innovation and customer acquisition. Coffee delivered mid-single digit growth, driven by Nescafé ready-to-drink offerings. Sales for Purina PetCare grew at a double-digit rate, based on new product launches and strong e-commerce momentum, particularly for Pro Plan and Fancy Feast. Infant Nutrition saw positive growth, with continued strong demand for NAN, which more than offset a sales decline for Wyeth products. Culinary posted slightly negative growth, as positive sales trends in out-of-home channels were more than offset by a decrease in retail sales.

Nestlé Health Science

-- -1.8% organic growth: -3.6% RIG; 1.9% pricing.

Sales Sales Organic Net Foreign Reported

3M-2024 3M-2023 RIG Pricing growth M&A exchange Growth

Nestlé

Health CHF 1.5 CHF 1.6

Science bn bn - 3.6% 1.9% - 1.8% 0.7% - 5.6% - 6.6%

Organic growth was -1.8%, with pricing of 1.9%. RIG was -3.6%, impacted, as expected, by the temporary supply constraints for the vitamins, minerals and supplements business. Net acquisitions increased sales by 0.7%. Foreign exchange negatively impacted sales by 5.6%. Reported sales in Nestlé Health Science decreased by 6.6% to CHF 1.5 billion. By geography, Europe reported mid single-digit growth, while other regions combined posted negative growth.

Vitamins, minerals and supplements posted negative growth, reflecting the continued impact of supply constraints encountered in the second half of 2023. The integration plan is on track, and the constraints are expected to be resolved by the end of the first half of 2024. Pure Encapsulations, which was not affected by the supply issue, continued to deliver strong double-digit growth. Active Nutrition posted negative growth. Medical Nutrition delivered mid single-digit growth and continued to gain market share. Growth was driven by strong sales momentum for adult medical care products and Vitaflo. Sales for gastrointestinal products continued to grow at a double-digit rate.

Nespresso

-- 1.0% organic growth: -0.2% RIG; 1.2% pricing.

Sales Sales Organic Net Foreign Reported

3M-2024 3M-2023 RIG Pricing growth M&A exchange Growth

CHF 1.5 CHF 1.6

Nespresso bn bn - 0.2% 1.2% 1.0% 0.1% - 5.1% - 4.1%

Organic growth was 1.0%, with pricing of 1.2%. RIG was -0.2%, impacted by the phasing of commercial activities. Foreign exchange negatively impacted sales by 5.1%. Reported sales in Nespresso decreased by 4.1% to CHF 1.5 billion. By geography, sales in North America grew at a mid single-digit rate, with market share gains. Europe posted slightly negative growth.

Growth was driven by the Vertuo system, which continued to generate broad-based momentum. Growth in out-of-home channels was also robust, fueled by further adoption of the Momento system. Innovation continued to resonate with consumers, based on new limited editions, particularly Pierre Hermé and Maple Pecan.

Business as a force for good: Nespresso's integrated approach to sustainability

Nespresso stands for truly outstanding coffee, brewed with matchless convenience. Since the beginning, the business has understood that delivering exceptional taste to consumers should go hand-in-hand with a true commitment to sustainability: from coffee growing all the way to delivering a superb brew. Nespresso uses just the right amount of coffee, water and energy for each cup, while also helping to improve the livelihoods of coffee farmers and protect the environment. Today, Nespresso is recognized as one of the top 100 brands in the world by Interbrand, a global brand consultancy. The business embeds its sustainable production and consumption initiatives in its communication and engagement with its consumers.

Having achieved B Corp certification in 2022, Nespresso is part of a global community of businesses that meet high standards of social and environmental performance, accountability and transparency.

The business's sustainability work focuses on two key aspects: its supply chain and end-of-life management of used materials.

The Nespresso AAA Sustainable Quality Program supports coffee farmers in implementing best agriculture practices, improving their productivity, and producing higher-quality coffee. Co-created with the Rainforest Alliance, the program celebrated its 20th anniversary last year and is building on its experience and helping farmers transition to regenerative agriculture.

With over 95% of its green coffee being priced above the Fairtrade International minimum, Nespresso is helping provide AAA coffee farmers with a stable income. It is also scaling up a crop insurance program to give farmers a safety net when impacted by weather events. The business additionally works with partners to revive coffee production in origins that have suffered from natural disasters or conflicts, including in Cuba, the Democratic Republic of Congo, Puerto Rico and Uganda.

Nespresso has also taken great strides in reducing waste. It uses at least 80% recycled aluminum content in its Original and Vertuo capsules and is expanding its RELOVE refurbished machine program to more countries. Since 2014, Nespresso has invested significantly in its recycling programs globally to make recycling easier and more convenient. Today, more than 90% of Nespresso aluminum capsules are purchased by consumers with access to a convenient recycling option. The business has worked with various partners to showcase creations using recycled coffee capsules, for instance, Hublot watches https://www.globenewswire.com/Tracker?data=CEhhMUiiMwL-8dCVYOHVi9_KVebIBLWa1zlmYoc-SYWMHq1Ag-a0AWQ0l3jFJ1Bm80R3yBBXgtLRqCdLad2g8mwv-1pFvnXFGK8oUrpgWDY=, Caran d'Ache ball pens https://www.globenewswire.com/Tracker?data=fW0hAQ8cohz13KiAxkYI-1BW3x19qbfdnFtfD3vp-E2basAf7jz7-XOL0TNDQGb3ZR63W_PrxiSiBcxV0rNrlsBuUDXmrMI7yQOgBJJKUWLXVUiYnynkkwwxReRpNRvEym4lfA3mNIoRHHRH27Oy84TKT6ZsJhwOL50x0H7QX7tnzTHAJtI2QsVhkSXLI8iN, or e-bikes from start-up Miloo https://www.globenewswire.com/Tracker?data=Zawhtqdaa-1T_hoRaJbmql1Xw1jrRyZGhsVhWHLNw4NFc1A8J13sT1V-Qjt9dIqbcC2mh7qX_VJ3CedL8vRQeSlvm1FJ6EZuK51QmwhvIxALhitA2-VSfGcU3pk3JMci31RvJa9rgmToxOhkNsN8Ug==. Most recently, Nespresso introduced a new range of paper-based home compostable coffee capsules.

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April 25, 2024 01:00 ET (05:00 GMT)