VEVEY, SWITZERLAND — Pricing actions paid off for Nestle S.A. in its Americas zone and its Waters business through the first nine months of the year.
An increase in pricing, which reflected inflation in commodity and freight costs, had a positive effect of 0.6% as the Americas (A.M.S.) zone reported organic sales growth of 1.4%.“Pricing dynamics are different by geography, partly depending on our category mix and their related commodities,” said Francois-Xavier Roger, chief financial officer of Nestle S.A., in an Oct. 18 earnings call. “E.M.E.N.A. (Europe, Middle East and North Africa) is more weighted toward coffee where input prices have fallen, resulting in slightly negative pricing. On the other hand, A.M.S. is more weighted toward waters and pet care, where increasing input cost have allowed us to take pricing.”
The A.M.S. zone recorded sales of 21,918 million Swiss francs ($22,019 million), which was down 2.9% from 22,569 million Swiss francs in the first nine months of the previous fiscal year. Net acquisitions reduced sales by 1.1%, largely related to Nestle divesting its U.S. confectionery business. Foreign exchange had a negative impact on sales of 3.2%.
Growth came in Purina pet care, Coffee-mate creamers and coffee, particularly in e-commerce. Ice cream, supported by Häagen-Dazs and Outshine, grew at a mid-single digit pace.
Nine-month sales for Nestle Waters rose 0.6% to 6,127 million Swiss francs from 6,093 million Swiss francs. Organic growth was 2.1% as pricing increased by 2.3%. Within Waters in the United States, price increases implemented in June reflected inflation in packaging and distribution costs. A recently launched sparkling range under regional spring water brands continued to see strong consumer demand, particularly for Poland Spring, Ice Mountain and Ozarka.
outlets outside of Starbucks stores around the world.