Press Release: Nestle: Nestlé reports half-year -4-

This plan expands on the company's ongoing work to certify all Nestlé Waters' sites according to the Alliance for Water Stewardship (AWS) by 2025. This standard involves understanding local water challenges and engaging with local stakeholders, providing Nestlé with much of the groundwork to design these new projects.

Outlook

Full-year 2021 outlook updated: we expect full-year organic sales growth between 5% and 6%. The underlying trading operating profit margin is now expected around 17.5%, reflecting initial time delays between input cost inflation and pricing as well as the one-off integration costs related to the acquisition of The Bountiful Company's core brands. Beyond 2021, our mid-term outlook for continued moderate margin improvement remains unchanged. Underlying earnings per share in constant currency and capital efficiency are expected to increase this year.

Annex

Half-year sales and underlying trading operating profit (UTOP) overview by operating segment

Nestlé

Total Zone Zone Zone Health Other

Group AMS EMENA AOA Nespresso Science Businesses

Sales

6M-2021

(CHF m) 41 755 16 162 10 214 10 210 3 158 1 914 97

Sales

6M-2020

(CHF m)* 41 152 16 674 10 029 10 062 2 762 1 540 85

Real

internal

growth

(RIG) 6.8% 5.3% 6.7% 6.3% 13.8% 13.6% 18.4%

Pricing 1.3% 2.3% 0.6% 0.5% 0.8% 0.0% - 0.4%

Organic

growth 8.1% 7.6% 7.3% 6.8% 14.6% 13.6% 18.0%

Net M&A - 3.1% - 4.3% - 4.1% - 3.7% - 0.2% 15.1% 0.0%

Foreign

exchange - 3.5% - 6.3% - 1.4% - 1.7% - 0.1% - 4.4% - 3.0%

Reported

sales

growth 1.5% - 3.1% 1.8% 1.5% 14.3% 24.3% 15.0%

6M-2021

Underlying

TOP (CHF

m) 7 251 3 112 1 918 2 282 822 258 7

6M-2020

Underlying

TOP (CHF

m)* 7 156 3 150 1 840 2 282 714 297 - 24

6M-2021

Underlying

TOP

Margin 17.4% 19.3% 18.8% 22.3% 26.0% 13.5% 7.6%

6M-2020

Underlying

TOP

Margin* 17.4% 18.9% 18.3% 22.7% 25.9% 19.3% - 28.6%

Half-year sales and underlying trading operating profit (UTOP) overview by product

Milk Prepared

Powdered products Nutrition dishes &

Total & liquid & ice & Health cooking

Group beverages Water cream Science aids Confec-tionery PetCare

Sales

6M-2021

(CHF m) 41 755 11 648 2 291 5 205 6 060 5 919 3 229 7 403

Sales

6M-2020

(CHF m)* 41 152 10 740 3 229 5 392 6 010 5 827 2 973 6 981

Real

internal

growth

(RIG) 6.8% 10.3% 2.0% 4.8% - 0.1% 7.1% 9.1% 9.5%

Pricing 1.3% 0.7% 1.6% 3.5% 1.1% 0.9% 1.9% 0.8%

Organic

growth 8.1% 11.0% 3.6% 8.2% 1.0% 8.0% 11.0% 10.3%

6M-2021

Underlying

TOP (CHF

m) 7 251 2 905 204 1 309 1 079 962 372 1 568

6M-2020

Underlying

TOP (CHF

m)* 7 156 2 467 272 1 231 1 401 1 071 280 1 537

6M-2021

Underlying

TOP

Margin 17.4% 24.9% 8.9% 25.2% 17.8% 16.3% 11.5% 21.2%

6M-2020

Underlying

TOP

Margin* 17.4% 23.0% 8.4% 22.8% 23.3% 18.4% 9.4% 22.0%

(*) 2020 figures restated following the disclosure of Nestlé Health Science and Nespresso as standalone segments from 2021 onwards (previously combined and presented in Other Businesses).

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com https://www.globenewswire.com/Tracker?data=WHMF38d6E_S1pkvqxKVD2wfz9FeCYAdviJ-s-cxsmWSNPTm4UNZ4BzB5S9BZnBbFsabeHSytYrJ5nR8BKVypEGf-OVAgfCSpLByxw8OC_jX5Sg2enqRnZyygeFxZD_1d

Investors:

Luca Borlini Tel.: +41 21 924 3509

ir@nestle.com https://www.globenewswire.com/Tracker?data=vl4kdcPCjjpil6ydZ4YYUXyF-Lk9xHEzM2NrWFRR8_8iYXdguwaNooppEOHMyhwYwFuR3YpHlDbqLtiQzGrlfg==

(END) Dow Jones Newswires

July 29, 2021 01:15 ET (05:15 GMT)