|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||105.22 - 105.98|
|52-week range||83.37 - 113.20|
|Beta (5Y monthly)||0.28|
|PE ratio (TTM)||24.65|
|Earnings date||30 Jul 2020|
|Forward dividend & yield||2.70 (2.57%)|
|Ex-dividend date||27 Apr 2020|
|1y target est||87.75|
The U.S. Supreme Court will decide whether American corporations can be sued for alleged human rights abuses occurring abroad under a 1789 law, agreeing on Thursday to hear appeals by two companies - Cargill Inc and a Nestle SA subsidiary - accused of knowingly helping perpetuate slavery at Ivory Coast cocoa farms. The two companies are asking the nine justices to reverse a lower court ruling that allowed the lawsuit, filed on behalf of former child slaves from Mali who worked on the farms, against the companies filed under the Alien Tort Statute to proceed. The lawsuits targeted the U.S. subsidiary of Swiss-based Nestle, the world's biggest food producer, and commodities trader Cargill, the largest privately held U.S. company.
(Bloomberg) -- The U.S. Supreme Court will consider giving companies a broader shield against lawsuits by victims of overseas atrocities, agreeing to take up a case stemming from child slavery on cocoa farms in the Ivory Coast.Nestle SA’s U.S. unit and Cargill Inc. are urging the court to end a suit that accuses them of complicity in the use of forced child labor in the African country. The Supreme Court said Thursday it will hear both companies’ appeals of that ruling.The case will test a centuries-old law, the 1789 Alien Tort Statute, that had become a favorite tool of human-rights activists before the Supreme Court started scaling it back. The court ruled in 2013 that the law generally doesn’t apply beyond U.S. borders, and in 2018 that foreign corporations can’t be sued.But a federal appeals court said the allegations against Nestle and Cargill might have enough of a U.S. connection if the plaintiffs amended their lawsuit to provide more specifics.“The allegations paint a picture of overseas slave labor that defendants perpetuated from headquarters in the United States,” the San Francisco-based appeals court said.President Donald Trump’s administration joined the companies in urging the Supreme Court to take up the case.The case, filed by six former slaves who were kidnapped from their native Mali, has been moving up and down the federal court system since 2005. The companies are accused of aiding and abetting slave labor by giving Ivory Coast farmers financial assistance in the expectation that cocoa prices would stay low. The suit alleges the companies were fully aware that child slavery was being used.The ex-slaves say children were forced to work as much as 14 hours a day, given only scraps to eat, and were severely beaten or tortured if they tried to escape.In its appeal, Nestle USA said the plaintiffs “have not even alleged that their injuries can be traced to the domestic conduct of a defendant.” The company said it “unequivocally condemns child slavery.”Cargill said the plaintiffs “do not allege they worked on a farm from which Cargill purchased cocoa or to which Cargill provided any form of assistance.”Multinational companies have faced dozens of suits accusing them of playing a role in human rights violations, environmental wrongdoing and labor abuses.The justices will hear arguments and rule in the nine-month term that starts in October.The cases are Nestle USA v. Doe, 19-416, and Cargill v. Doe, 19-453.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Nestle will change the name of two popular Australian confectionery products, Red Skins and Chicos sweets, the food and beverage giant said on Tuesday, amid a global debate over racial inequality. The move is part of the corporate world's reckoning with the treatment of African Americans, following anti-racism protests triggered by the death of George Floyd in police custody in Minneapolis late last month. Last week, PepsiCo Inc said it would change the name and brand image of its Aunt Jemima pancake mix and syrup, which have been criticized as racist.
Nestle is exploring a potential sale of part of its North American water business, including the Pure Life brand, it said on Thursday, as the food giant shifts focus to better performing brands. The business under review also includes regional spring water brands like Poland Spring and generated sales of 3.4 billion Swiss francs ($3.61 billion) last year, accounting for almost half of total water revenue. "We are withdrawing from a bulk business to focus on high-value (water) specialities," Nestle Chief Executive Mark Schneider told Reuters by phone.
This press release is also available in Français (pdf) and Deutsch (pdf) ............. Vevey, June 11, 2020 Nestlé sharpens water focus on international, premium mineral and functional brands while exploring strategic options for parts of North American businessPledges to make entire water portfolio carbon neutral by 2025Nestlé S.A.'s Board of Directors today approved a new strategic direction for its Waters business. The company will sharpen its focus on its iconic international brands, its leading premium mineral water brands, and invest in differentiated healthy hydration, such as functional water products. The Board also confirmed its intent to explore strategic acquisitions to grow in this category, while pledging to make its entire global water portfolio carbon neutral and replenish associated watersheds by 2025.At the same time, the Board concluded that its regional spring water brands, purified water business and beverage delivery service at its Nestlé Waters North America unit lie outside this focus. As a result, the company has decided to explore strategic options, including a potential sale, for the majority of the Nestlé Waters business in North America (U.S. and Canada), excluding its International brands. This review is expected to be completed by early-2021.Encompassing all brands, products and geographies of Nestlé Waters, the company's new sustainability commitments build on existing efforts to reach ambitious milestones across the category. With the aim to achieve all goals by 2025, Nestlé is driving action to: * Achieve Carbon Neutrality: Nestlé Waters will pursue high-quality offsets in addition to investing in projects that reduce or capture carbon across its portfolio. Further, the company is prioritizing International brands Perrier®, S.Pellegrino® and Acqua Panna® to achieve carbon neutrality by 2022. * Enhance Water Stewardship: As part of the new strategy, Nestlé Waters will support the environmental sustainability of watersheds by replenishing 100% of the water it uses. The company is already committed to certifying all of its water sites globally to the internationally respected Alliance for Water Stewardship (AWS) standard. * Tackle Plastic Waste: Nestlé Waters’ packaging is already 100% recyclable or reusable. As part of its broader efforts to drive a circular economy, Nestlé Waters is committing to halve its use of virgin plastic by using more recycled PET and supporting the roll out of alternative delivery systems. Mark Schneider, Nestlé CEO, said, "The creation of a more focused business enables us to more aggressively pursue emerging consumer trends, such as functional water, while doubling down on our sustainability agenda. This strategy offers the best opportunity for long-term profitable growth in the category, while appealing to environmentally and health-conscious consumers. Nestlé is one of the pioneers in the global water business and remains committed to healthy hydration. We are working tirelessly to ensure that consumers can enjoy our beverages in an environmentally responsible way."The Nestlé Waters business in North America, excluding International brands, had sales of around CHF 3.4 billion in 2019. Apart from the retained International brands it includes popular regional U.S. spring water brands such as Poland Spring® Brand 100% Natural Spring Water, Deer Park® Brand 100% Natural Spring Water, Ozarka® Brand 100% Natural Spring Water, Ice Mountain® Brand 100% Natural Spring Water, Zephyrhills® Brand 100% Natural Spring Water, and Arrowhead® Brand Mountain Spring Water. It also comprises the direct-to-consumer and office beverage delivery service ReadyRefresh® by Nestlé®, and the Nestlé® Pure Life® brand.Nestlé remains fully committed to growing its iconic International brands in the U.S. and globally, including Perrier, S.Pellegrino and Acqua Panna. Celebrated the world over for exceptional sophistication and taste, these brands have been timeless performers in the Waters portfolio. Additionally, the company will further build its leading premium mineral water brands around the world and invest in differentiated products under the Nestlé Pure Life brand, such as functional water with health-enhancing ingredients.Nestlé's global Waters sales amounted to CHF 7.8 billion in 2019. The portfolio encompasses 48 water brands and one tea brand on five continents, including internationally renowned brands such as Perrier, S.Pellegrino and Acqua Panna, as well as regional premium brands like Erikli® in Turkey, Sohat® in Lebanon and Buxton® in the UK.* * * Contacts: Media: Christoph Meier Tel.: +41 21 924 2200 email@example.com Investors: Luca Borlini Tel.: +41 21 924 3509 firstname.lastname@example.org
As impossible as it sounds, Nestle (OTC: NSRGY) has lost a European trademark infringement case to Impossible Foods over its plant-based burgers. The District Court of The Hague in the Netherlands ruled Nestle's Garden Gourmet Incredible Burger is so close in name to Impossible Foods' Impossible Burger that it would confuse consumers, even though the former launched its burgers in 15 countries last year and the latter doesn't sell its burgers in Europe yet. The market for plant-based meat alternatives is growing in the U.S. and globally, with Impossible Foods and Beyond Meat (NASDAQ: BYND) having credibly earned first-mover leadership status at restaurants and supermarkets.
Last week, the District Court in The Hague granted an injunction filed by Impossible Foods to prevent Nestle from marketing its burgers as "Incredible" after arguing that the signage bore a strong visual, phonetic and conceptual resemblance to the U.S. company's EU trademark and could confuse consumers. In its ruling, the court agreed that Nestle had infringed Impossible Foods' trademarks and prohibited the KitKat-maker from using the "Incredible" name throughout Europe, giving it four weeks to withdraw its products from shelves or face 25,000 euros ($27,772.50) a day in fines.
The company said its first plant-based food facility for Asia would be built in Tianjin Economic-Technological Development Area (TEDA) and that it could launch faux meat products by the end of this year. Chinese consumers have been steadily shifting to plant-based diets over the past few years, in part due to a devastating pig disease and bruising Sino-U.S. trade war driving up meat prices. China's "free from meat" market, which includes alternative meat products, grew 33.5% since 2014 to be worth just under $10 billion in 2018, according to Euromonitor.
Short-sellers are convinced a company marketing the first approved biologic for treating peanut allergies in children and teenagers will fail. Here's why.
Sales in North America and Europe were particularly strong in March, helping to drive an overall rise of 4.3% in the first three months of the year, beating analyst expectations for a 3% increase. In North America, Purina Pet care sales rose by a double-digit percentage while Nescafe and Coffee Mate drinks had high single-digit increases. Chief Executive Mark Schneider said Nestle was working to adapt to the virus conditions and ensure it had enough raw materials and factory capacity to meet the increased demand, while also taking safety precautions against COVID-19.
This press release is also available in Français (pdf) and Deutsch (pdf) Follow today's event live 14:00 CEST Investor call audio webcast Full details in Events ............. Vevey, April 24, 2020 Nestlé reports three-month sales for 2020, provides COVID-19 updateThe COVID-19 crisis is having an extraordinary and far-reaching impact on all our lives. Since the earliest stages of the pandemic, we have been working closely with local authorities and business partners to respond to the challenge. We have three key priorities: safeguarding the health and wellbeing of our people, ensuring business continuity to meet consumer needs and supporting communities all over the world with local relief efforts.In these difficult times, many of our business partners are facing serious challenges, which create enormous uncertainty for their employees and families. We will continue to be a dependable business partner and make every possible effort to adapt to the evolving situation.For our out-of-home and food service customers, who have been severely affected, we are offering prompt and pragmatic assistance to weather the crisis and help them restart their businesses. For example, under our "Always open for You" initiative, we are extending payment terms, suspending rental fees for coffee machines and offering free products. The total value of this initiative is expected to be around CHF 500 million.Another example is our dairy supply chain. We are directly working with more than 200 000 dairy farmers globally. Dairy is highly perishable, and many farmers are now facing significant demand disruptions. We are fully meeting our commitments to buy agreed volumes in order to help sustain their livelihoods.Since the beginning of this pandemic, we have engaged in numerous projects around the world as a reliable employer and business partner as well as a trusted neighbor and citizen in the 187 countries where we operate. Our commitment is certain and unwavering.During the first quarter, our company remained resilient: * Organic growth reached 4.3%, with real internal growth (RIG) of 4.7% and pricing of -0.4%. Growth was supported by strong momentum in the Americas and Zone EMENA. Zone AOA saw a sharp sales decline. * Total reported sales decreased by 6.2% to CHF 20.8 billion (3M-2019: CHF 22.2 billion). Acquisitions net of divestitures reduced sales by 4.7%, foreign exchange reduced sales by 5.8%. * Portfolio management is on track. The divestment of the U.S. ice cream business for USD 4 billion to Froneri was completed on January 31, 2020. The sale of a 60% stake in the Herta charcuterie (cold cuts and meat-based products) business to Casa Tarradellas is expected to close in the first half of 2020. * Nestlé has decided to explore strategic options, including a potential sale, for its Yinlu peanut milk and canned rice porridge businesses in China. Nestlé will retain and develop its existing Nescafé ready-to-drink coffee business. * As it is still too early to assess the full impact of COVID-19, we maintain our original full-year 2020 guidance for the time being. We expect continued improvement in organic sales growth and underlying trading operating profit margin. Underlying earnings per share in constant currency and capital efficiency are expected to increase. Mark Schneider, Nestlé CEO, commented: “The COVID-19 crisis continues to impact all our lives in powerful and sometimes tragic ways. Our thoughts are with all those who have been affected and we extend our deepest sympathies to those who have lost loved ones.Nestlé has a special responsibility at this time. Our food and beverage products help keep people healthy, provide comfort and support recovery.Our people, in particular our frontline workers, have shown extraordinary commitment in keeping our business running and meeting consumer needs. We will continue to work hard to provide food and beverages to people across the world, every day. Our company remained resilient in the first quarter, reflecting our diversified product portfolio and our strong local presence in 187 countries. However, this crisis is far from over and we will face many uncertainties in the coming quarters. We will continue to adapt quickly to changing consumer needs and to challenges in our global supply chains. As a reliable employer and business partner we are meeting our commitments. As a good citizen and trusted neighbor, we continue to offer our help, in particular to the most vulnerable in society. Over the last 154 years, Nestlé has successfully overcome many challenges. We are confident that - together with all those who are fighting against the pandemic and its consequences - we will also overcome this one.” Total GroupZone AMSZone EMENAZone AOAOther Businesses Sales 3M-2020 (CHF m)20 8128 3475 3134 9742 178 Sales 3M-2019 (CHF m)*22 1838 5745 2905 5112 808 RIG4.7%7.9%8.2%-4.6%8.0% Pricing- 0.4%- 0.5%- 1.1%0.0%0.5% Organic growth4.3%7.4%7.1%-4.6%8.5% Net M&A- 4.7%- 4.0%- 0.5%0.0%- 25.4% Foreign ex-change-5.8%-6.1%-6.2%-5.1%-5.5% Re-ported sales growth-6.2%-2.7%0.4%-9.7%-22.4% * 2019 figures restated following the decision to integrate the Nestlé Waters business into the Group’s three geographical Zones, effective January 1, 2020. Group salesOrganic growth reached 4.3%, with RIG of 4.7%. Pricing temporarily decreased by 0.4%, mainly reflecting timing of promotions in North America.Organic growth was supported by strong momentum in the Americas and Zone EMENA. Zone AOA posted negative growth, mainly due to a double-digit sales decline in China. Organic growth was 7.4% in developed markets, based entirely on RIG. Growth in emerging markets was 0.5%.By product category, the largest growth contributor was Purina PetCare and its premium brands Purina Pro Plan and Purina ONE. Prepared dishes and cooking aids grew at a high single-digit rate, with improved growth across all brands. Coffee saw good momentum, fueled by the demand for Starbucks products, Nespresso and Nescafé. Nestlé Health Science posted double-digit growth, reflecting elevated demand for consumer and medical nutrition products.Acquisitions net of divestitures decreased sales by 4.7%, largely related to the divestment of Nestlé Skin Health and the U.S. ice cream business. Foreign exchange reduced sales by 5.8%, reflecting appreciation of the Swiss franc versus most currencies. Total reported sales decreased by 6.2% to CHF 20.8 billion. Business impact of the COVID-19 crisisNestlé has responded quickly and taken necessary measures to minimize the impacts of this global crisis. To date, the Group has been able to effectively serve its retail partners and consumers despite some local disruptions in the supply chain and temporary staffing shortages. Nestlé’s frontline workers have been instrumental in overcoming these challenges.The effect of COVID-19 varied materially by geography, product category and sales channel, depending on the timing of the outbreak, the scope of restrictions and consumer behavior: * Geographies: A majority of markets, particularly in North America and Europe, saw significantly increased growth in March, partially supported by consumer stockpiling. China posted a sharp sales decline, due to movement restrictions in place for almost the full quarter, limited consumer stockpiling and relatively higher exposure to out-of-home channels. * Product categories: Essential products saw increased demand. Prepared dishes and cooking aids, Purina PetCare, coffee and Nestlé Health Science products reported increased growth. Confectionery and ice cream posted a sales decline, reflecting reduced gifting and impulse buying. * Sales channels: All markets saw a significant shift from out-of-home to in-home consumption. Out-of-home channels posted negative growth, with significant sales declines for Nestlé Professional, water and Nespresso boutiques. E-commerce sales grew by 29.4%, exceeding 10% of total Group sales for the first time. The financial impact of COVID-19 remains difficult to quantify and will depend on the duration and the economic consequences of this crisis. Nestlé continues to adapt quickly to supply chain challenges and changing consumer behavior. The Group remains resilient given its diversified portfolio of products and presence across the globe. Portfolio ManagementIn January 2020, Nestlé completed the sale of its U.S. ice cream business for USD 4 billion to Froneri, the successful global joint venture with PAI Partners. The Group expects to close the sale of a 60% stake in its Herta charcuterie (cold cuts and meat-based products) business to Casa Tarradellas in the first half of 2020.In January 2020, the Group announced an asset purchase agreement with Allergan to acquire the gastrointestinal medication Zenpep. With this move, Nestlé aims to expand its medical nutrition business and complement its portfolio of therapeutic products. The purchase of Zenpep is expected to be completed during the second quarter of this year.In April 2020, Nestlé also announced and completed the acquisition of Lily’s Kitchen, a premium natural pet food business. Strategic DevelopmentsThe Board of Directors has decided to explore strategic options, including a potential sale, for its Yinlu peanut milk and canned rice porridge businesses in China. The intention is to ensure the long-term growth and success of these Yinlu businesses, which had sales of CHF 700 million in 2019. Nestlé will retain its ready-to-drink Nescafé coffee business, currently filled and distributed by Yinlu. Nescafé is a strategic growth driver, and Nestlé will continue to invest heavily in the brand in China.The Board of Directors has also reaffirmed and emphasized the strategic importance of the Chinese market for the Group. Nestlé currently operates 31 factories, three R&D centers and four product innovation centers in the Greater China Region. The Group has made significant capital expenditure investments in the Region and continues to see significant opportunities for further investments and sustainable growth. Zone Americas (AMS) * 7.4% organic growth: 7.9% RIG; -0.5% pricing. * North America saw high single-digit organic growth, with strong RIG and negative pricing. * Latin America reported mid single-digit organic growth, with positive RIG and pricing. Sales 3M-2020Sales 3M-2019RIGPricingOrganic growthNet M&AForeign ex-changeReported growth Zone AMSCHF 8.3 bnCHF 8.6 bn7.9%- 0.5%7.4%- 4.0%- 6.1%- 2.7% Organic growth increased to 7.4%, supported by higher RIG of 7.9%. Pricing decreased by 0.5%, mainly reflecting timing of promotions in North America. Acquisitions net of divestitures reduced sales by 4.0%, largely related to the divestment of the U.S. ice cream business. Foreign exchange had a negative impact of 6.1%. Reported sales in Zone AMS decreased by 2.7% to CHF 8.3 billion.North America grew at a high single-digit rate, supported by strong RIG in most product categories. The largest growth contributor was Purina PetCare, which saw sustained momentum in e-commerce and premium brands. Purina Pro Plan, Fancy Feast and veterinary products grew at a double-digit rate. Beverages, including Starbucks products, Nescafé and Coffee mate, grew at a high single-digit rate. Frozen food posted high single-digit growth, with positive contribution from all brands, particularly DiGiorno, Stouffer’s and Hot Pockets. Baking products, including Toll House and Carnation, saw elevated consumer demand. Gerber baby food reported mid single-digit growth, supported by its organic range and healthy snacking. Water posted positive growth, based on strong momentum for S.Pellegrino and a positive sales development for regional brands outside of the out-of-home channel. Nestlé Professional reported a sales decline, as out-of-home channels closed or cut back services in March.Latin America saw mid single-digit growth, supported by most geographies and product categories. Sales in Brazil grew at a high single-digit rate, with significant growth in infant nutrition, ambient dairy and coffee. Mexico saw mid single-digit growth, based on increased sales for Nescafé and Coffee mate. Chile posted high single-digit growth. Latin America recorded double-digit growth for Purina PetCare and culinary products. KitKat continued to grow, partially offsetting a sales decline in other confectionery products. Zone Europe, Middle-East and North Africa (EMENA) * 7.1% organic growth: 8.2% RIG; -1.1% pricing. * Western Europe saw mid single-digit organic growth. Strong RIG was partially offset by negative pricing. * Central and Eastern Europe had high single-digit organic growth, with strong RIG. Pricing was negative. * Middle East and North Africa posted high single-digit organic growth, based on strong RIG and slightly positive pricing. Sales 3M-2020Sales 3M-2019RIGPricingOrganic growthNet M&AForeign ex-changeReported growth Zone EMENACHF 5.3 bnCHF 5.3 bn8.2%- 1.1%7.1%- 0.5%- 6.2%0.4% Organic growth was 7.1%, with increased RIG of 8.2%. Pricing decreased by 1.1%, as deflationary trends continued to affect the food and retail sectors across most European markets. Acquisitions net of divestitures reduced sales by 0.5%. Foreign exchange negatively impacted sales by 6.2%. Reported sales in Zone EMENA increased by 0.4% to CHF 5.3 billion.Zone EMENA reported high single-digit organic growth, with broad-based market share gains across most product categories and geographies. Germany, Russia, Israel and Spain saw particularly strong growth.Prepared dishes and cooking aids, coffee, Purina PetCare and infant nutrition reported double-digit growth. Culinary products saw elevated consumer demand across all segments, particularly Maggi and Garden Gourmet vegetarian and plant-based food products. Coffee posted increased growth, supported by Starbucks products and Nescafé. Purina PetCare reported continued strong momentum, led by Felix, Purina ONE and Tails.com. Infant nutrition saw increased consumer demand across most geographies, particularly for products with Human Milk Oligosaccharides (HMOs). Water posted negative growth, impacted by sales declines in the out-of-home channel. Nestlé Professional recorded a double-digit decline in sales. Zone Asia, Oceania and sub-Saharan Africa (AOA) * -4.6% organic growth: -4.6% RIG; 0.0% pricing. * China posted a double-digit decline in organic growth, mainly due to negative RIG. Pricing was negative. * South-East Asia maintained mid single-digit organic growth, led by RIG. Pricing was slightly positive. * South Asia reported high single-digit organic growth, with solid RIG. * Sub-Saharan Africa saw double-digit organic growth, based on strong RIG. * Japan and Oceania had low single-digit organic growth. Solid RIG was partially offset by negative pricing. Sales 3M-2020Sales 3M-2019RIGPricingOrganic growthNet M&AForeign ex-changeReported growth Zone AOACHF 5.0 bnCHF 5.5 bn- 4.6%0.0%- 4.6%0.0%- 5.1%- 9.7% Organic growth was -4.6%, with RIG of -4.6%. Pricing was flat. Acquisitions net of divestitures had no impact on sales. Foreign exchange reduced sales by 5.1%. Reported sales in Zone AOA decreased by 9.7% to CHF 5.0 billion.Zone AOA reported negative organic growth, mainly due to a sales decline in China. Other sub-regions saw mid single-digit growth.China posted double-digit negative growth, due to a significant sales decline for the out-of-home channel and the timing of Chinese New Year. Examples include Nestlé Professional, Yinlu peanut milk and canned rice porridge, Hsu Fu Chi confectionery, ready-to-drink products and ice cream. Wyeth infant formula sales decreased, particularly the S-26 range. Infant cereals and Purina PetCare posted double-digit growth. E-commerce sales saw double-digit growth, supported by Nescafé and Starbucks products.South-East Asia posted solid growth, supported by strong momentum in Indonesia and improved growth in the Philippines and Thailand. Bear Brand and Maggi grew at a double-digit rate. South Asia recorded high single-digit growth. India continued to perform well, with continued momentum for NAN, Maggi and KitKat. Pakistan returned to positive growth, based on improved sales development for ambient dairy. Sub-Saharan Africa accelerated to a double-digit growth rate, supported by Nido, Milo and coffee. Japan and Oceania saw low single-digit growth. Oceania posted strong growth across all product categories, particularly Purina PetCare, confectionery and Nescafé. Japan saw a decline in sales, with KitKat impacted by a reduced number of inbound tourists.By product category, Purina PetCare, Milo and Maggi delivered positive growth. Within coffee, Starbucks products continued to see strong consumer demand. Outside of China, infant nutrition saw good sales momentum. Nestlé Professional recorded a double-digit decline in sales. Other Businesses * 8.5% organic growth: 8.0% RIG; 0.5% pricing. * Nespresso reported mid single-digit organic growth, with positive RIG and pricing. * Nestlé Health Science saw double-digit organic growth, entirely driven by RIG. Sales 3M-2020Sales 3M-2019RIGPricingOrganic growthNet M&AForeign ex-changeReported growth Other BusinessesCHF 2.2 bnCHF 2.8 bn8.0%0.5%8.5%- 25.4%- 5.5%- 22.4% Organic growth of 8.5% was supported by RIG of 8.0% and pricing of 0.5%. Acquisitions net of divestitures reduced sales by 25.4%, due to the divestment of Nestlé Skin Health. Foreign exchange had a negative impact of 5.5%. Reported sales in Other Businesses decreased by 22.4% to CHF 2.2 billion.Nespresso saw mid single-digit organic growth. The Americas and AOA grew at a double-digit rate, with continued market share gains in the United States and Canada. Sales in Europe decreased, reflecting boutique closures and significantly reduced demand in the out-of-home channel, particularly in the latter part of the quarter.Nestlé Health Science accelerated to a double-digit growth rate, supported by strong momentum for consumer and medical nutrition products. Garden of Life and Pure Encapsulations saw increased growth, based on high demand for quality supplements that support overall health and the immune system. Our business as a force for good during COVID-19: Coming together globally, working locallyCompanies around the world are called upon to support the fight against the spread of the virus, to provide urgently needed goods and to safeguard livelihoods. We are joining all our stakeholders to provide a helping hand to the communities around us and to the most vulnerable around the globe.Our people are fully committed and are working hard to ensure that supply is maintained. As employees rise to these new challenges, we are providing extra support to ensure their health, safety and wellbeing. This includes guaranteeing 12 weeks of regular wages for all hourly and salaried staff affected by temporary stoppages.Since the very beginning of this crisis, we have led local relief efforts all over the globe. We have provided support to charities, medical institutions and other frontline organizations fighting this pandemic. In addition to local efforts, we are increasing our support to partners to support emergency relief and vulnerable populations. The following are just two of many examples of how our businesses and people are supporting the communities in which they operate.Partnering with IFRC to help strengthen its emergency response. Building on a long-standing global partnership, we announced in March that we were joining forces with the International Federation of Red Cross and Red Crescent Societies (IFRC) to provide urgent help for emergency services and caregivers. We will exceed our initial contribution of CHF 10 million and have already identified projects in almost 40 countries for immediate support on the ground. We will continue to match donations to the IFRC made by our employees.Partnering with physicians treating COVID-19 patients. Providing nutrition to patients who are critically ill with COVID-19 is an additional challenge for health care professionals. COVID-19 patients in intensive care often experience acute respiratory failure and need to be tube fed with high-protein and high-energy nutrition. Our Nestlé Health Science team has long-standing expertise in supporting patients with specially developed medical nutrition products. Our experts have been working with physicians to create a simplified algorithm and feeding protocol based on updated international guidelines. This approach, which does not require Nestlé products, is being shared with healthcare providers around the world to help improve patient outcomes and reduce the strain on the healthcare system. In addition, Nestlé Health Science has donated medical nutrition products to support patient recovery and help medical staff keep up their strength in many markets including China and Italy. OutlookAs it is still too early to assess the full impact of COVID-19, we maintain our original full-year 2020 guidance for the time being. We expect continued improvement in organic sales growth and underlying trading operating profit margin. Underlying earnings per share in constant currency and capital efficiency are expected to increase. Annex Three-month sales overview by operating segment Total GroupZone AMSZone EMENAZone AOAOther Businesses Sales 3M-2020 (CHF m)20 8128 3475 3134 9742 178 Sales 3M-2019 (CHF m) *22 1838 5745 2905 5112 808 RIG4.7%7.9%8.2%- 4.6%8.0% Pricing- 0.4%- 0.5%- 1.1%0.0%0.5% Organic growth4.3%7.4%7.1%- 4.6%8.5% Net M&A- 4.7%- 4.0%- 0.5%0.0%- 25.4% Foreign ex-change- 5.8%- 6.1%- 6.2%- 5.1%- 5.5% Reported sales growth- 6.2%- 2.7%0.4%- 9.7%- 22.4% * 2019 figures restated following the decision to integrate the Nestlé Waters business into the Group’s three geographical Zones, effective January 1, 2020. Three-month sales overview by product Total GroupPowdered & liquid beveragesWaterMilk products & ice creamNutrition & Health SciencePrepared dishes & cooking aidsConfection-eryPetcare Sales 3M-2020 (CHF m)20 8125 4401 5862 6423 0582 9521 6323 502 Sales 3M-2019 (CHF m)22 1835 5381 6793 1243 8332 9281 8583 223 RIG4.7%3.8%1.9%2.0%2.8%7.9%- 2.3%13.3% Pricing- 0.4%0.1%- 3.3%0.1%0.1%- 0.8%- 1.9%0.6% Organic growth4.3%3.9%- 1.4%2.1%2.9%7.1%- 4.2%13.9% * * * Contacts: Media: Christoph Meier Tel.: +41 21 924 2200 Investors: Luca Borlini Tel.: +41 21 924 3820
This press release is also available in Français (pdf) and Deutsch (pdf) ............. Vevey, April 23, 2020 Nestlé S.A. Annual General Meeting * All Board of Directors' proposals approved with strong majorities * Hanne Jimenez de Mora elected as new member of the Board The 153rd Nestlé S.A. Annual General Meeting took place in Lausanne today.Out of concern for people’s health and in accordance with applicable ordinances of the Swiss authorities in light of the COVID-19 pandemic, shareholders could not attend in person. The meeting took place at the Beaulieu Convention Center in Lausanne and all legal proceedings were carried out as required. Shareholders were able to exercise their voting rights through the Independent Representative Hartmann Dreyer, Attorneys-at-law, who represented 57.8 percent of the capital and 80.1 percent of the shares entitled to vote.The addresses of the Chairman and the CEO are available to view online. The detailed voting results (pdf) from the AGM have also been published. All proposals of the Board of Directors were approved with strong majorities.Nestlé Chairman Paul Bulcke said: "Our Annual General Meeting at Lausanne-Beaulieu took place today as planned, although unfortunately without the presence of shareholders. I am truly sorry that we were unable to meet in person this year because of the pandemic that is affecting us all. I want to thank our shareholders for their understanding and for their continued trust and support of our company. I very much look forward to seeing them in person again next year under normal circumstances."The annual review and the accounts were approved, as were the proposed dividend of CHF 2.70 per share and the planned capital reduction.The shareholders elected Ms Hanne Jimenez de Mora, Co-founder and Chairperson of management consulting company a-connect (group) ag and formerly a partner with McKinsey & Company, as a new member of the Board. A video presenting Hanne Jimenez de Mora's candidacy to join the Board is available online.Mr Beat W. Hess did not stand for re-election to the Board after twelve years of dedicated service. On behalf of the Board, the Chairman warmly thanked Mr Hess for his highly appreciated advice and important contributions as director.The shareholders elected the Chairman and all other members of the Board of Directors individually for a term of office until the end of the next Annual General Meeting. They also elected the members of the Compensation Committee for a one-year term.Furthermore, Ernst & Young Ltd was appointed as auditors for the 2020 financial statements of Nestlé S.A. and the consolidated financial statements of the Nestlé Group.For the year to come, the Board and its different committees will be composed as follows:Board of Directors Paul Bulcke, U. Mark Schneider, Henri de Castries, Renato Fassbind, Pablo Isla, Ann M. Veneman, Eva Cheng, Patrick Aebischer, Ursula M. Burns, Kasper B. Rorsted, Kimberly A. Ross, Dick Boer, Dinesh Paliwal, Hanne Jimenez de MoraChairman's and Corporate Governance Committee Paul Bulcke, U. Mark Schneider, Henri de Castries, Renato Fassbind, Pablo IslaCompensation Committee Pablo Isla, Patrick Aebischer, Ursula M. Burns, Dick BoerNomination and Sustainability Committee Henri de Castries, Paul Bulcke, Ann M. Veneman, Eva Cheng, Dinesh PaliwalAudit Committee Renato Fassbind, Henri de Castries, Eva Cheng, Kimberly A. RossAll information on the Annual General Meeting can be found on the Nestlé corporate website.* * * Contacts: Media: Christoph Meier Tel.: +41 21 924 2200 Investors: Luca Borlini Tel.: +41 21 924 3509
Nestle <NESN.S> bought London-based Lily's Kitchen that makes food for dogs and cats in the higher-priced segment, the Swiss group said on Wednesday, as it bulks up in pet food, its fastest-growing product category. Purina PetCare had 7.0% organic growth and sales of 13.622 billion Swiss francs ($14.12 billion) in 2019, outpacing Nestle's other categories. Most of Lily's Kitchen's products are in the so-called premium segment that grew at a double-digit rate for Nestle last year.
The move will cover both part-time and salaried employees as well as those working in its retail operations - the Kit Kat Chocolatory and Nespresso boutiques - which have been temporarily closed in some places, the company said in a statement. It will also pay bonuses to salaried employees of its Canadian factories who cannot work from home. "The COVID-19 pandemic is a global problem and consequently we are offering help on the ground everywhere," Nestle Chief Executive Officer Mark Schneider said in a statement.
Nestle, the world's biggest food company, says it has made significant progress removing cocoa produced in protected forests in West Africa from its supply chain as pressure builds from consumers and governments for ethically sourced cocoa. The company said it had mapped, using GPS co-ordinates, 75% of the 120,000 cocoa farms it sources from directly in Ivory Coast and Ghana, which produce some two thirds of the world's cocoa. It found around 3,700 farms in protected forests in the process of mapping, and removed them from its supply chain.
Food giant Nestle <NESN.S> told employees to prepare for difficult times ahead and make all the necessary efforts to supply customers with the food and beverages they need, Chief Executive Mark Schneider said in a memorandum seen by Reuters. "This is the moment for extra effort, for going the extra mile," Schneider said in a message to staff, distributed internally on Friday. "Please get ready for the storm to hit – because hit it will," Schneider added.
Nestle Chief Executive Mark Schneider will fine-tune his transformation plans with more acquisitions, he said after the Swiss food group lowered growth expectations on Thursday. The company had earlier said it will take longer than expected to hit its 2020 organic growth target despite posting its highest annual growth in four years and improved profitability. Like rivals such as Unilever, Nescafe coffee and KitKat maker Nestle has been working hard to streamline its diverse portfolio in line with changing consumer tastes and growing demand for healthier and more environmentally friendly produce and packaging.
Food giant Nestle <NESN.S> has set up new structures to turn innovative ideas from outside and inside the company into new products, its technology head told journalists on Wednesday ahead of the publication of the group's full-year results. Employees, often from Nestle's research teams, can apply for funding to develop products via the company's internal ideas factory or "shark tank", while startups or students can work with Nestle scientists and resources, including lab space, at so-called "accelerators". Nestle and its packaged food peers have come under pressure to speed up innovation from a flurry of small local rivals that win over health and eco-conscious consumers with trendy foods and drinks, from cold-brew coffee to plant-based burgers.
The funding brings Nestle's total investment to $473 million, increasing the Swiss company's stake to 19.9% of Aimmune's outstanding stock and voting power. Nestle's investment is an incremental positive for Aimmune's shares, which have seen some weakness due to investor worries over financing, Piper Sandler analyst Christopher Raymond wrote in a note. "With this additional investment, we think the prospect of an outright take out by Nestle (or anyone else for that matter) has to be factored in more than before," Raymond said.
BERLIN/VEVEY, Switzerland (Reuters) - A German firm backed by bottled water giant Danone <DANO.PA> plans to launch a sparkling-water machine for the home early next year, its chief executive told Reuters, squarely taking aim at PepsiCo's <PEP.O> SodaStream. Nestle <NESN.S>, the bottled water market leader, is also considering a machine for the home with filters, flavors and fizz that would be a smaller version of its Refill+ dispensers being rolled out in cafeterias, hotels and offices this year. Concerns about plastic waste and the environmental impact of transporting bottled water are prompting more people to drink straight from the tap, which is in turn pushing water firms to come up with new products to keep customers on board.
BERLIN/VEVEY, Switzerland (Reuters) - A German firm backed by bottled water giant Danone <DANO.PA> plans to launch a sparkling-water machine for the home early next year, its chief executive told Reuters, squarely taking aim at PepsiCo's <PEP.O> SodaStream. Nestle <NESN.S>, the bottled water market leader, is also considering a machine for the home with filters, flavours and fizz that would be a smaller version of its Refill+ dispensers being rolled out in cafeterias, hotels and offices this year. Concerns about plastic waste and the environmental impact of transporting bottled water are prompting more people to drink straight from the tap, which is in turn pushing water firms to come up with new products to keep customers on board.
U.S. drugmaker AbbVie's <ABBV.N> $63 billion tie-up with Allergan <AGN.N> is getting help from Nestle <NESN.S> and AstraZeneca <AZN.L> buying up products the Irish-domiciled company is shedding to placate regulators. AbbVie is swallowing Allergan to give it control of the lucrative wrinkle treatment Botox and to diversify a portfolio heavily dependent on its $19-billion-per-year arthritis drug Humira, the world's best-selling medicine that is advancing toward U.S. patent expiration. Swiss food group Nestle bulked up its medical nutrition business with Allergan's Zenpep, a product with 2018 sales of $237 million which treats people whose pancreases do not provide enough enzymes to digest fats, proteins and sugars.