Retail in Asia


Nestlé posts 2022 annual results; continued momentum for pet food and coffee

Nestlé has reported its 2022 full-year results, posting an 8.4 percent increase in total reported sales to to CHF 94.4 billion.

By product category, Purina PetCare was the largest contributor to organic growth, with continued momentum for brands Purina Pro Plan, Purina ONE, and Fancy Feast. Coffee sales also saw growth across brands and geographies, supported by a strong recovery of out-of-home channels.

SEE ALSO: Starbucks to add 400 stores across APAC in 2023

Led by Nescafé, Maggi and Milo, Southeast Asia saw mid single-digit growth, while South Asia reported double-digit growth stimulated by Maggi, KitKat and Nescafé.

In Japan, growth was supported by Nescafé, Starbucks and Purina PetCare. Sales in South Korea grew at a double-digit rate, driven by Starbucks products and increased demand for KitKat. Oceania also recorded highs for Nescafé, Maggi and KitKat.

Meanwhile Greater China was bolstered by e-commerce and operational execution, increasing total sales by 3.4 percent to CHF 5.4 billion. Purina PetCare sales rose at a double-digit rate, with strong growth in specialty channels and e-commerce. Infant nutrition saw improved market share for brands NAN and illuma. Coffee posted high single-digit growth, led by Nescafé ready-to-drink coffee as well as Starbucks products. In confectionery, Hsu Fu Chi, which launched savoury snacks, reported high single-digit growth.

SEE ALSO: China’s growing pet economy sees premium food boom

“Last year brought many challenges and tough choices for families, communities and businesses,” commented Nestlé CEO Mark Schneider, noting the effects of inflation. “Looking to 2023, we expect another year of robust organic growth, with a focus on restoring our gross margin, stepping up marketing investments and increasing free cash flow.”

For 2023, Nestlé projects organic sales growth between 6 and 8 percent, and an increase in operating profit margin of at least 17 percent.