According to Nestlé, its Purina PetCare segment has mostly contributed to the company’s growth, reaching a revenue of CHF9.37 billion ($10.8B/€9.8B) in H1 2023, compared to CHF8.58 billion ($10B/€8.9B) in the same period in the previous year.
Especially, wet and dry pet food products redounded to the good performance in pet care segment, achieving an organic growth of 13.9%. Purina ONE, Purina Pro Plan and Friskies products even recorded double-digit growth-
Also, this category experienced the strongest price increases (12.1%) in the first six months, followed by milk products (11.3%) and water (10.5%).
The segment’s growth in Europe was mainly furthered by a sophisticated range of Felix, Gourmet and Purina ONE premium products.
However, in North America, the company increased its market-share by double-digit numbers which can be ascribed to Purina ONE, Purina Pro Plan and Friskies. According to Nestlé, there was a “broad-based demand”, especially in e-commerce.
Across the Asia, Oceania and Africa (AOA) regions, Purina recorded “high single-digit growth” by the company’s own account.
The pet care segment caused a mid-single-digit growth in Japan and South Korea. Whereas the Purina PetCare division could record double-digit increase in China, mainly furthered by Purina Pro Plan and Fancy Feast. The company has also opened new producht lines in Tiajin, China.
Nestlé has adjusted organic sales growth forecast for this year to 7-8 % with an underlying trade profit of 17-17.5 %.
CEO Mark Schneider highlights that Nestlé has “pursued its strategic priorities with discipline and focus in a fast-evolving consumer environment.”
“For the remainder of the year, we are confident that we will deliver a positive combination of volume and mix, an improvement in gross margin and a significant increase in marketing investments,” he said to investors.