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Nestlé Sells More Coffee, Pet Food and Maggi Products

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Food group Nestlé also noticed a strong demand for its coffee products in the second quarter. Purina and Felix’s pet food also proved popular, as did the seasonings for Maggi’s kitchen. Strong sales have prompted the Swiss company to tighten up its sales expectations for the entire year slightly.

 

Nestlé sells, among other things, Starbucks coffee for the supermarket. As a result, the turnover of that well-known brand was almost 17 percent higher than a year earlier. Nescafe and Nespresso were also popular.

The brands that are doing well are not coincidentally all products for which more demand arose during the corona lockdowns last year, when people started working more from home, took a pet for the company and were more or less forced to cook at home. Last quarter there were still lockdowns, although the measures were relaxed in many countries.

The impact of the pandemic on the figures is also apparent from lower sales of baby food. According to Nestlé, this is due to the lower birth rates due to the virus outbreak. The group may be able to sell more products from this later on. Babies conceived during the pandemic would now be a baby boom, according to experts.

In the first half of the year, revenues amounted to 41.8 billion francs, equivalent to almost 39 billion euros. In its own right, this equates to a turnover growth of more than 8 percent compared to the same period last year. In addition, net profit increased by more than 1 percent to 5.9 billion francs.

Nestlé is now counting on self-sustained revenue growth of 5 to 6 percent for the whole year. That is a small improvement compared to the previous expectation. However, the forecast for the profit margin has been slightly lowered. This is due to increased raw material prices and costs related to integrating the businesses acquired earlier this year from vitamin and supplement maker The Bountiful Company.

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