VEVEY, SWITZERLAND — Nestlé released its financial results for the first half of 2024, highlighting the Purina Petcare business as a leading growth contributor. The business achieved total sales of CHF 9.45 billion ($10.74 billion USD) in the first half of 2024, a slight increase from CHF 9.37 billion ($10.64 billion USD) in the first half of 2023.
Purina’s growth was attributed to its science-based premium pet food brands Purina Pro Plan, Fancy Feast and Purina ONE. Trading operating profit for the business was CHF 2.07 billion ($2.35 billion USD), a 6.7% increase from CHF 1.94 billion ($2.20 billion USD) in the prior year. Underlying trading operating profit was CHF 2.09 billion ($2.37 billion USD), a 6.6% increase from CHF 1.96 billion ($2.23 billion USD) in the prior year.
Note: Swiss franc (CHF) to USD currency conversions are based on July 25 conversion rates.
In Zone North America, Purina was the largest growth contributor, led by Purina Pro Plan, Fancy Feast and Dog Chow brands. The business expanded its range of functional, science-backed products with new launches, like Pro Plan Vital Systems for cats and Pro Plan Veterinary Diets Elemental for dogs, to fuel this growth.
“Purina PetCare continues to be the largest growth contributor, gaining RIG [real internal growth] momentum and market share despite ongoing category normalization post-COVID and the recent inflation spikes,” shared Anna Manz, chief financial officer of Nestlé.
In Zone Europe, Purina was the key growth contributor out of all Nestlé businesses. The pet care business delivered mid single-digit growth, which was attributed to differentiated product offerings from its premium brands Gourmet, Purina ONE and Felix.
In Zone Latin America, Purina witnessed flat growth, driven by its Felix and Friskies brands.
In Zone Greater China, the business witnessed double-digit growth, which was attributed to new product launches and strong e-commerce momentum for Purina Pro Plan.
“The [Petcare] category is seeing some deceleration after exceptional growth over the last four years,” Manz said. “This is driven by slowing contribution from pricing and some softening of category volume growth as consumers spend less time at home. We see this as a transitory phase. Overall, pet populations are still growing, the pet-human bond continues to strengthen, and, therefore, the category fundamentals are strong. We continue to outperform the category with market share gains.”
Overall, Nestlé reported total sales of CHF 45 billion ($51.1 billion USD) in the first six months of 2024, down 2.7% from the prior year. The company also updated its full-year 2024 outlook, expecting organic sales growth of at least 3%.
“Positive real internal growth is back,” said Mark Schneider, chief executive officer, Nestlé. “We delivered improved volume and mix growth across the group in the second quarter. Nestlé Health Science is recovering as planned and is set for a strong second half.
“Looking ahead to the remainder of the year, we will continue to drive RIG [real internal growth] by launching innovations that address consumer trends and growing our large iconic brands,” he added. “At the same time, we have seen pricing come down faster than expected. Therefore, we consider it prudent to adjust our guidance for the year, with organic sales growth now expected to be at least 3%.”
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