Nestlé has reported a 1.5 per cent total sales decrease to CHF 93 billion in its full year 2023.

The Swiss multinational stated the moderate decline, which was slightly below expectations, was influenced by foreign exchange decreasing sales by 7.8 per cent and net divestitures having a negative impact of 0.9 per cent.

However, across 2023 Nestlé’s underlying trading operating profit margin increased by 20 basis points on a reported basis to 17.3 per cent, while trading operating profit margin increased by 160 basis points to 15.6 per cent.

The company said it anticipates organic sales growth of around four per cent in 2024 and a moderate increase in its underlying trading operating profit margin.

“Unprecedented inflation over the last two years has increased pressure on many consumers and impacted demand for food and beverage products,” said Nestlé chief executive Mark Schneider. “In this challenging context, we delivered strong organic growth and solid margin improvement with increased marketing and other growth investments.”

Looking to 2024, Schneider went on to say that the company aims to prioritise volume and mix-led growth with increased brand support as it continues to improve customer experience through "active innovation and renovation, premiumisation, affordability and more nutritious options".

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