Nestlé’s net profit slipped to CHF 10.9bn, down 2.9%; with basic earnings per share also down 1% to CHF 4.19 (underlying EPS was CHF 4.77, up 2.5% in constant currency).
Organic sales grew 2.2% through 1.5% pricing and 0.8% RIG.
Coffee was once again the biggest growth contributor for the group, with confectionery and PetCare also key.
Dairy posted negative growth, as a decline in coffee creamers and ambient dairy more than offset growth for affordable milks and dairy culinary solutions, Nestlé said.
In Zone Asia, Oceania and Africa, dairy saw a sales decline, impacted by the introduction of a sales tax in Pakistan as well as actions to reduce customer inventories and reshape the portfolio. Nestlé also recorded losses in dairy in Latin America and Greater China.
Focus on AI to reduce procurement costs
Nestlé‘s cost-reduction program – which is targeting CHF 2.5bn in savings by 2027 – is expected to deliver CHF 0.7bn in 2025 in savings. Around three quarters of the total savings from the program will come from procurement, with artificial intelligence (AI) set to play a major role in the company’s procurement and supplier management pathways going forward.
The company’s efficiency measures have already helped offset increased commodity costs in coffee and cocoa, allowing the firm to remain on track to meet its 2025 guidance.
Unilever hires ex Heineken chief for de-merged ice cream business
Underlying sales growth for the full year was 4.2% (2023: 7.0% YoY), led by volume of 2.9% and price of 1.3%. Turnover was €60.8bn, up 1.9%.
Underlying operating profit increased to €11.2bn, up 12.6% and margin was up 18.4% with earnings per share at €2.98, up 14.7%.
The company expects a slower start to 2025 with subdued market growth in the near term and a more balanced volume-price split.
Unilever will pursue a demerger of its ice cream business and says it is on track to complete the process by the end of 2025.
Ice Cream will be incorporated in the Netherlands and continue to be headquartered in Amsterdam. The business will be listed in Amsterdam, London and New York.
Former Heineken CEO Jean-Francois van Boxmeer has been appointed chair designate for the separated ice cream division.
“We are making progress on the key workstreams, including the legal entities set up, implementing the standalone operating model and preparing the carve-out financials,” the company said.
In Q4, Ice Cream grew 3.7%, with a return to positive volume growth of 1.6%. This reflected an improved performance in the second half supported by bigger innovations and operational improvements, the company said.
