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

By geography, sales in North America grew at a high single-digit rate. Europe saw positive growth. Other regions combined posted double-digit growth.

The underlying trading operating profit margin of Nestlé Health Science increased by 20 basis points. Growth leverage and acquisition synergies more than offset cost inflation and growth investments.

Business as a force for good: Improving the lives of lower-income consumers through affordable nutrition

Supply chain disruptions and inflationary pressures have been exacerbated by the war in Ukraine and extreme weather events related to climate change. People's purchasing power has been reduced. In this context, offering affordable, nutritious food to lower-income consumers is more important than ever.

Working to make nutritious food products affordable and accessible is part of Nestlé's mission. The company focuses on four areas:

-- Micronutrient deficiencies are widespread globally. Nestlé helps

tackle the issue through micronutrient fortification based on local

needs. In Pakistan, for example, one out of two children are deficient in

iron. The company recently launched BUNYAD IRON+, an affordable

dairy-based drink fortified with a new source of iron that is more easily

absorbed in the body. In the Central and West Africa Region (CWAR), where

iron deficiency is also widespread, Nestlé fortifies Maggi bouillon

with iron and iodine. These products are used widely and regularly in the

region to add flavor to home-cooked meals. Last year, Nestlé sold 82

billion fortified servings of affordable Maggi bouillon in CWAR alone.

Nestlé also addresses inadequacies in macronutrients, like fiber,

healthy fats and protein, through its products.

-- To increase the availability and accessibility of affordable nutrition

products, Nestlé aims to offer them at a price people can afford on

their daily wages. It's also about making products available wherever

consumers shop. In remote areas around the world, Nestlé leverages

different channels specific to local markets to distribute its affordable

nutrition products. The traditional open markets in CWAR, where Maggi

bouillon is sold, is just one example.

-- Nestlé works on value chain optimization to keep costs low and

secure supply. It sources ingredients from local producers and strives to

minimize food waste. Nestlé Cerevita Instant Sour Porridge, for

instance, is an affordable nutritious solution for consumers in southern

Africa. It uses high-quality ingredients that are locally and sustainably

sourced. Production of the product leverages existing roller drying and

dry-mixing technologies. In this way, Nestlé minimizes production

costs and provides a porridge that is adapted to local consumer taste

preferences and nutritional requirements.

-- Nestlé is expanding its nutrition education programs and

partnerships to help consumers. For example, its 'Live Strong with Iron'

campaign in CWAR promotes the awareness and consumption of iron-rich

foods. In Australia, Nestlé developed and produced the first

custom-made product for Foodbank, a food relief organization. The Maggi

Hearty One Pot Recipe Mix is used in combination with the fresh

ingredients Foodbank provides and has added flavor to one million meals

so far. The product is helping fight food insecurity and minimizing food

waste at the same time.

Outlook

Full-year 2022 outlook updated: we expect organic sales growth between 7% and 8%. The underlying trading operating profit margin is now expected around 17.0%. Underlying earnings per share in constant currency and capital efficiency are expected to increase.

Annex

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

Zone Zone Zone Nestlé

Total North Zone Zone Latin Greater Health Other

Group America Europe AOA America China Nespresso Science Businesses

Sales

6M-2022

(CHF m) 45 580 12 138 9 283 9 335 5 659 2 677 3 190 3 167 131

Sales

6M-2021

(CHF m)* 41 755 11 364 9 022 8 878 4 798 2 524 3 158 1 914 97

Real

internal

growth

(RIG)** 1.7% - 0.2% 2.1% 2.1% 4.2% 1.6% - 1.6% 4.4% 31.1%

Pricing** 6.5% 9.8% 4.9% 6.1% 9.4% 0.7% 4.2% 2.2% 2.7%

Organic

growth** 8.1% 9.6% 7.1% 8.2% 13.6% 2.3% 2.6% 6.6% 33.8%

Net M&A** 1.0% - 7.1% 1.6% - 0.1% 0.1% 0.0% 0.1% 57.2% 0.0%

Foreign

exchange 0.1% 4.3% - 5.7% - 3.0% 4.3% 3.8% - 1.7% 1.7% 0.3%

Reported

sales

growth 9.2% 6.8% 2.9% 5.2% 17.9% 6.0% 1.0% 65.5% 34.1%

6M-2022

Underlying

TOP (CHF

m) 7 683 2 284 1 606 2 198 1 196 400 777 435 - 5

6M-2021

Underlying

TOP (CHF

m)* 7 251 2 104 1 686 2 162 1 008 352 822 258 7

6M-2022

Underlying

TOP

Margin 16.9% 18.8% 17.3% 23.5% 21.1% 15.0% 24.3% 13.7% - 3.6%

6M-2021

Underlying

TOP

Margin* 17.4% 18.5% 18.7% 24.4% 21.0% 14.0% 26.0% 13.5% 7.6%

(*) 2021 figures restated following the creation of Zone North America (NA) and Zone Greater China (GC) as of January 1, 2022. Zone AOA includes Middle East and North Africa (MENA) previously included in Zone EMENA

(**) RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign exchange lines

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-2022

(CHF m) 45 580 12 335 1 792 5 443 7 689 6 137 3 595 8 589

Sales

6M-2021

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

Real

internal

growth

(RIG)** 1.7% 1.3% 8.8% - 3.3% 4.2% - 5.0% 6.8% 5.1%

Pricing** 6.5% 6.2% 8.4% 6.8% 3.6% 7.9% 4.0% 8.8%

Organic

growth** 8.1% 7.6% 17.2% 3.5% 7.8% 2.9% 10.8% 13.9%

6M-2022

Underlying

TOP (CHF

m) 7 683 2 915 175 1 192 1 502 974 498 1 635

6M-2021

Underlying

TOP (CHF

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

6M-2022

Underlying

TOP

Margin 16.9% 23.6% 9.7% 21.9% 19.5% 15.9% 13.8% 19.0%

6M-2021

Underlying

TOP

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

(**) RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign exchange lines

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com https://www.globenewswire.com/Tracker?data=W3Ugqwk5CTmMz6OjsDZc-jmTQmlUAXhzIAJN5y-MrRj2v9e0CqP5Na6c2O6aq_jDnQT2pGoJwJPMaBCgREyBUBVHj_19aYaRlKSM_1mmEMgolPHNVk4f_najWaf-Oc-i

Investors:

Luca Borlini Tel.: +41 21 924 3509

ir@nestle.com https://www.globenewswire.com/Tracker?data=mfU_rol7U5uTqTvZPQcj4S_8Y38ogCRRX1bqaYYzKM54vCqCXkVb1uejhao2IcJ5ywcFdbDVlt84uPtnnTx4qA==

(END) Dow Jones Newswires

July 28, 2022 01:15 ET (05:15 GMT)