Nestlé’s organic growth in 2022 was 8.3 percent. The company reported group sales of CHF 94.4 billion for last year, compared to CHF 87,1 billion in 2021. Pricing increased to 8.2 percent, reflecting significant cost inflation. RIG (shot for real internal growth) was positive at 0.1 percent, following a high base of comparison in 2021, supply constraints and portfolio optimization actions. Net profit decreased by 45.2 percent to CHF 9.3 billion. In 2022, the company completed acquisitions and divestments with a total value of around CHF 1.9 billion. For 2023, Nestlé expects organic sales growth between six and eight percent.
Mark Schneider, Nestlé CEO, commented: "The entire Nestlé team demonstrated dependability, as we navigated this difficult environment. Organic growth was solid, margins continued to be resilient. 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. Nestlé’s value creation model puts us in a strong position to achieve our 2025 targets and to generate reliable, sustainable shareholder returns."
Zone Europa received CHF 19.1 billion in sales. Organic growth was 7.2 percent, with pricing of 6.4 percent. RIG was resilient at 0.9 percent, following a high base of comparison in 2021 as well as supply constraints. Nestlé North America achieved sales of CHF 26.3 billion. The organic growth was 10.3 percent, with pricing of 11.6 percent. RIG was -1.3 percent, following pricing activities, a high base of comparison in 2021 and supply constraints. Zone Asia, Oceania and Africa reported CHF 18.5 billion for sales. Organic growth reached 8.2 percent, with pricing of 8.1 percent. RIG was 0.1 percent, impacted by a high base of comparison in 2021 and portfolio optimization actions. Latin America received CHF 11.8 billion in sales. Organic growth was 13.1 percent, with pricing of 11.6 percent. RIG was 1.5 percent, following a high base of comparison in 2021. Zone Greater China reported CHF 5.4 billion sales. Organic growth was 3.5 percent, with pricing of 2.5 percent. RIG was 1.0 percent, impacted by COVID-19-related movement restrictions.
Organic growth was 7.1 percent in developed markets, driven by pricing. In emerging markets, organic growth was ten percent, supported by both pricing and RIG. By product category, Purina Petcare was the largest contributor to organic growth, with continued momentum for science-based and premium brands as well as veterinary products. Sales in coffee grew at a high single-digit rate, with broad-based growth across brands and geographies, supported by a strong recovery of out-of-home channels. Sales of Starbucks products grew by 12.9 percent to reach CHF 3.6 billion. Infant Nutrition saw double-digit growth, with broad-based contributions across geographies and brands. Confectionery posted high single-digit growth. Dairy reported mid single digit growth, with continued momentum for coffee creamers, affordable fortified milks and home-baking products. Water recorded double-digit growth, with a sales decrease in the fourth quarter as a result of temporary capacity constraints. Prepared dishes and cooking aids posted low single-digit growth, following a high base of comparison in 2021. Sales in vegetarian and plant-based food grew at a mid single-digit rate. Nestlé Health Science reported mid single-digit growth, driven by Medical Nutrition and healthy-aging products.
