More than 20% of Nestlé’s sales last year were pet products

Nestlé Purina hit CHF 18.8 billion (€19.72B/$21.35B) in sales in 2023, up from CHF 18.1 billion (€18.98B/$20.55B) in 2022. 

Purina ONE, Purina Pro Plan and Friskies all recorded double-digit growth, according to the company’s earnings report released this week. Purina Pro Plan hit almost CHF 3 billion (€3.15B/$3.41B) in sales. 

The multinational’s pet portfolio was the second-best performing category in terms of sales, hot on the heels of its coffee, cocoa and malt beverage businesses. But if we look at organic sales growth, the pet category takes first place with its 12.1% increase in 2023. Confectionary followed in second place with 8.5% organic growth.

Nestlé posted total reported sales of CHF 93 billion (€97.53B/$105.61B) in 2023, a decrease of 1.5% compared to the previous year.

Inflation

The pet portfolio was also one of the categories most affected by price increases. The overall price increase for Nestlé products as a whole was 7.5% last year, but this figure increases to 9.3% when looking at just the pet portfolio.

“Unprecedented inflation over the last 2 years has increased pressure on many consumers and impacted demand for food and beverage products,” admits Nestlé’s CEO Mark Schneider.

Geographical breakdown

North America saw market share gains in pet food, with Purina PetCare recording “broad-based demand across segments, channels and brands.” Europe saw a similar trend, with Purina leading in terms of growth, driven by its various offerings across its premium brands Felix, Gourmet and Purina ONE. 

Greater China was another zone that brought in market share gains for Nestlé’s pet segment, with sales for Purina PetCare growing at a double-digit rate based on new product launches and strong e-commerce momentum.

However, in Asia, Oceania and Africa, Purina PetCare saw mid-single-digit growth, which was mainly led by Purina ONE, Supercoat and Felix. The pet product category saw a similar growth rate in Latin America. 

Looking ahead

Nestlé expects its organic sales growth to reduce to around 4% this year and anticipates a moderate increase in its underlying trading operating profit margin.

Schneider added that the company will be “prioritizing” volume- and mix-led growth with increased brand support in 2024. “We will continue to focus capital allocation on our fast-growing billionaire brands, which enables us to deliver dependable growth while enhancing brand loyalty.”

The company forecasts mid-single-digit organic sales growth across all its businesses in 2025. According to Nestlé’s press release, its underlying trading operating profit margin should range from 17.5% to 18.5%.