Purina PetCare main driver for Nestlé’s growth
Nestlé’s Purina PetCare grew by 10.2% in 2020, making it one of the top contributors to revenue for Nestlé.
With a steady growth rate, Purina PetCare has jumped from 4th place in 2017 to 2nd place in 2020 in the top revenue and profit generators. It contributed 17% and 22% to total revenue and trading operating profit in 2020.
The company’s powdered and liquid beverage segment remains the champion. But the pet care segment is the most promising. Its growth rate has accelerated since 2018. It’s the only segment that posts positive sales growth for 3 consecutive years in the last 3 years. And it has a trading operating margin of 22.1% in 2020, placing the segment in the 2nd position.
In the coming years, its pet care business may become key for the company to achieve its growth targets. With that growth, Purina Petcare can possibly close the gap with Mars Petcare and become the industry leader. Today, Mars Petcare’s total revenue is US $ 18,1 Billion, while Purina PetCare trails with US $14 Billion.
Source: Seeking Alpha