Podcast
Questions and Answers
What was the underlying trading operating profit margin in constant currency?
What was the underlying trading operating profit margin in constant currency?
- 16.1%
- 14.5%
- 17.3% (correct)
- 15.6%
What was the earnings per share in CHF?
What was the earnings per share in CHF?
- 3.00
- 10.4
- 4.24 (correct)
- 16.1
By how much did the underlying earnings per share increase in constant currency?
By how much did the underlying earnings per share increase in constant currency?
- +1.7%
- +40%
- +8.4% (correct)
- +23.7%
What is the proposed dividend increase in percentage?
What is the proposed dividend increase in percentage?
What was the trading operating profit in CHF?
What was the trading operating profit in CHF?
What percentage of net financial debt does the operating cash flow represent?
What percentage of net financial debt does the operating cash flow represent?
What was the increase in underlying trading operating profit margin in basis points?
What was the increase in underlying trading operating profit margin in basis points?
What is the stated goal of the business described?
What is the stated goal of the business described?
What percentage of UTOP margin did Nestlé achieve in the prepared dishes and cooking aids category?
What percentage of UTOP margin did Nestlé achieve in the prepared dishes and cooking aids category?
What is the primary goal for 2030 regarding the sourcing of materials?
What is the primary goal for 2030 regarding the sourcing of materials?
Which brand is not mentioned as part of Nestlé’s prepared dishes and cooking aids?
Which brand is not mentioned as part of Nestlé’s prepared dishes and cooking aids?
What new product line did Nestlé introduce in Chile and Germany?
What new product line did Nestlé introduce in Chile and Germany?
Which Nestlé product was redesigned to save 156 tonnes of plastic annually?
Which Nestlé product was redesigned to save 156 tonnes of plastic annually?
What sustainability initiative is linked to monitoring trees planted in sourcing regions?
What sustainability initiative is linked to monitoring trees planted in sourcing regions?
What is a key feature of the expanded Totole Recipe Solutions range in China?
What is a key feature of the expanded Totole Recipe Solutions range in China?
What aspect do the products in Nestlé's prepared dishes and cooking aids category focus on?
What aspect do the products in Nestlé's prepared dishes and cooking aids category focus on?
What innovation was implemented to reduce plastic usage in China?
What innovation was implemented to reduce plastic usage in China?
Which of the following regions is mentioned as having a collaboration for reusable packaging?
Which of the following regions is mentioned as having a collaboration for reusable packaging?
What percentage of responsible sourcing was achieved by Nestlé in 2023?
What percentage of responsible sourcing was achieved by Nestlé in 2023?
What effect did the Earthworm Foundation have on Nestlé's supply chain?
What effect did the Earthworm Foundation have on Nestlé's supply chain?
What is the key feature of the redesigned packaging for Nestlé's products mentioned?
What is the key feature of the redesigned packaging for Nestlé's products mentioned?
What is the main focus of Nestlé's value creation model?
What is the main focus of Nestlé's value creation model?
How does Nestlé support regenerative food production?
How does Nestlé support regenerative food production?
What approach is emphasized in Nestlé’s culture when engaging with stakeholders?
What approach is emphasized in Nestlé’s culture when engaging with stakeholders?
Which aspect of AI and data science is highlighted in supporting Nestlé’s innovation?
Which aspect of AI and data science is highlighted in supporting Nestlé’s innovation?
What is one of Nestlé's commitments in response to consumer expectations?
What is one of Nestlé's commitments in response to consumer expectations?
Who holds the position of Chief Executive Officer at Nestlé?
Who holds the position of Chief Executive Officer at Nestlé?
Which of the following best captures the essence of 'Creating Shared Value' at Nestlé?
Which of the following best captures the essence of 'Creating Shared Value' at Nestlé?
What role do employees play in Nestlé's operations according to the content?
What role do employees play in Nestlé's operations according to the content?
What nutritional benefit does the new OM Metabolic Response + Joint Mobility provide for dogs?
What nutritional benefit does the new OM Metabolic Response + Joint Mobility provide for dogs?
Which ingredient in the OM Metabolic formula supports joint health?
Which ingredient in the OM Metabolic formula supports joint health?
What is the primary purpose of Purina Pro Plan Veterinary Supplements?
What is the primary purpose of Purina Pro Plan Veterinary Supplements?
What aspect of pet nutrition are many owners customizing for their pets?
What aspect of pet nutrition are many owners customizing for their pets?
What common issue in cats is addressed by Purina's products according to the content?
What common issue in cats is addressed by Purina's products according to the content?
Which product is identified as the #1 U.S. recommended probiotic by veterinarians?
Which product is identified as the #1 U.S. recommended probiotic by veterinarians?
Which of the following is NOT mentioned as a health-focused nutrition option by Purina?
Which of the following is NOT mentioned as a health-focused nutrition option by Purina?
What condition do digestive disorders in pets commonly relate to?
What condition do digestive disorders in pets commonly relate to?
What is the primary focus of Nescafé's strategy in India?
What is the primary focus of Nescafé's strategy in India?
Nescafé’s coffee is manufactured using imported coffee beans only.
Nescafé’s coffee is manufactured using imported coffee beans only.
How many Indian households has Nescafé introduced its coffee to over the past seven years?
How many Indian households has Nescafé introduced its coffee to over the past seven years?
Nescafé is increasingly available across the country in __________ retail outlets.
Nescafé is increasingly available across the country in __________ retail outlets.
What is one of the key benefits that Nescafé aims to provide through its marketing?
What is one of the key benefits that Nescafé aims to provide through its marketing?
Match the following aspects with their corresponding Nescafé initiatives:
Match the following aspects with their corresponding Nescafé initiatives:
The Nescafé brand has each product tailored to suit global taste preferences.
The Nescafé brand has each product tailored to suit global taste preferences.
What has Nescafé prioritized to captivate the loyalty of its target audience?
What has Nescafé prioritized to captivate the loyalty of its target audience?
How many liters of milk do the gold category Ninho farms supply per month?
How many liters of milk do the gold category Ninho farms supply per month?
Ninho aims to source 50% of Brazilian milk from gold-category dairy farms by 2025.
Ninho aims to source 50% of Brazilian milk from gold-category dairy farms by 2025.
What are the three pillars that Ninho communicates best farming practices around?
What are the three pillars that Ninho communicates best farming practices around?
Ninho's communication efforts include using _____ commemorative packs.
Ninho's communication efforts include using _____ commemorative packs.
Which of the following brands is part of Nestlé's confectionery business?
Which of the following brands is part of Nestlé's confectionery business?
Match the following Ninho initiatives with their descriptions:
Match the following Ninho initiatives with their descriptions:
The Nestlé Annual Review 2023 includes information about agricultural sustainability.
The Nestlé Annual Review 2023 includes information about agricultural sustainability.
What percentage of UTOP margin did Nestlé's confectionery business achieve?
What percentage of UTOP margin did Nestlé's confectionery business achieve?
Who is the visionary creator behind the new limited edition glass bottle for Perrier?
Who is the visionary creator behind the new limited edition glass bottle for Perrier?
S.Pellegrino focuses solely on bottled water and does not engage in culinary education.
S.Pellegrino focuses solely on bottled water and does not engage in culinary education.
What initiative does S.Pellegrino partner with to help prevent food waste?
What initiative does S.Pellegrino partner with to help prevent food waste?
The S.Pellegrino Young Chef Academy connects talented young chefs with influential members of the __________ world.
The S.Pellegrino Young Chef Academy connects talented young chefs with influential members of the __________ world.
Match the following S.Pellegrino initiatives to their purposes:
Match the following S.Pellegrino initiatives to their purposes:
How many chefs from various nationalities belong to the S.Pellegrino Young Chef Academy community?
How many chefs from various nationalities belong to the S.Pellegrino Young Chef Academy community?
S.Pellegrino's new Mediterranean blends range was launched globally before its introduction in France.
S.Pellegrino's new Mediterranean blends range was launched globally before its introduction in France.
What is the goal of S.Pellegrino's initiatives for the future of gastronomy?
What is the goal of S.Pellegrino's initiatives for the future of gastronomy?
What new product introduced by Nestlé in 2023 is made from cow’s milk and contains beneficial prebiotic fibers?
What new product introduced by Nestlé in 2023 is made from cow’s milk and contains beneficial prebiotic fibers?
Nestlé N3 milk is high in lactose content.
Nestlé N3 milk is high in lactose content.
Name one market where Nestlé has launched its eB2B platforms.
Name one market where Nestlé has launched its eB2B platforms.
Nestlé N3 milk is designed to support the growth of beneficial __________ in the gut.
Nestlé N3 milk is designed to support the growth of beneficial __________ in the gut.
Match the following Nestlé products with their characteristics:
Match the following Nestlé products with their characteristics:
How many active suppliers does the Nestlé Supplier Portal currently support?
How many active suppliers does the Nestlé Supplier Portal currently support?
The eB2B platform BEES is a partner of Nestlé.
The eB2B platform BEES is a partner of Nestlé.
What percentage fewer calories does Nestlé N3 milk have compared to regular milk?
What percentage fewer calories does Nestlé N3 milk have compared to regular milk?
What was the profit for the year attributable to shareholders of the parent in 2023?
What was the profit for the year attributable to shareholders of the parent in 2023?
The underlying trading operating profit decreased from 2022 to 2023.
The underlying trading operating profit decreased from 2022 to 2023.
What was the ratio of net financial debt to total equity in 2023?
What was the ratio of net financial debt to total equity in 2023?
The trading operating profit as a percentage of sales in 2023 was _____%.
The trading operating profit as a percentage of sales in 2023 was _____%.
Match the following categories with their respective capital additions in millions of CHF for 2023:
Match the following categories with their respective capital additions in millions of CHF for 2023:
Which figure represents the operating cash flow for 2023?
Which figure represents the operating cash flow for 2023?
The free cash flow increased from 6,570 million CHF in 2022 to 10,403 million CHF in 2023.
The free cash flow increased from 6,570 million CHF in 2022 to 10,403 million CHF in 2023.
What is the basic earnings per share in CHF for 2023?
What is the basic earnings per share in CHF for 2023?
The net financial debt for Nestlé in 2023 was _____ million CHF.
The net financial debt for Nestlé in 2023 was _____ million CHF.
What was the total equity reported for Nestlé in 2023?
What was the total equity reported for Nestlé in 2023?
What is one of the notable components of the N3 milk products?
What is one of the notable components of the N3 milk products?
The Nescafé Plan 2030 aims to increase greenhouse gas emissions from farming.
The Nescafé Plan 2030 aims to increase greenhouse gas emissions from farming.
What calorie limit is set for children's confectionery and ice cream portions as of July 2023?
What calorie limit is set for children's confectionery and ice cream portions as of July 2023?
The N3 milk products are designed for people with __________ sensitivity.
The N3 milk products are designed for people with __________ sensitivity.
Which of the following best describes the focus of Nestlé's initiatives?
Which of the following best describes the focus of Nestlé's initiatives?
Match the following products with their health benefits:
Match the following products with their health benefits:
Nestlé research is conducted only in Switzerland.
Nestlé research is conducted only in Switzerland.
What do Nescafé farmers aim to improve through regenerative agriculture practices?
What do Nescafé farmers aim to improve through regenerative agriculture practices?
What percentage of Nestlé's food and beverage sales in 2023 came from products with a Health Star Rating of 3.5 stars or more?
What percentage of Nestlé's food and beverage sales in 2023 came from products with a Health Star Rating of 3.5 stars or more?
Nestlé excludes its pet care portfolio from the quality and food safety assessment.
Nestlé excludes its pet care portfolio from the quality and food safety assessment.
What is the fundamental approach Nestlé takes to ensure food safety and quality?
What is the fundamental approach Nestlé takes to ensure food safety and quality?
Nestlé provides guidance including recipes, menu planning, and __________ for nutritious choices.
Nestlé provides guidance including recipes, menu planning, and __________ for nutritious choices.
Match the following aspects related to Nestlé with their descriptions:
Match the following aspects related to Nestlé with their descriptions:
Which of the following is a key component of Nestlé's commitment to food quality?
Which of the following is a key component of Nestlé's commitment to food quality?
Nestlé's food safety and quality systems are static and do not adapt to regulatory changes.
Nestlé's food safety and quality systems are static and do not adapt to regulatory changes.
In how many analytical tests did Nestlé's Quality Assurance Centers perform in 2023?
In how many analytical tests did Nestlé's Quality Assurance Centers perform in 2023?
What is the target reduction in greenhouse gas emissions by 2030?
What is the target reduction in greenhouse gas emissions by 2030?
The goal for primary supply chains is to achieve 100% assessed deforestation-free status by 2025.
The goal for primary supply chains is to achieve 100% assessed deforestation-free status by 2025.
What is the percentage of management positions held by women?
What is the percentage of management positions held by women?
The aim is to reduce virgin plastics by one third by ________.
The aim is to reduce virgin plastics by one third by ________.
Match the following goals with their respective target years:
Match the following goals with their respective target years:
How many young people does the organization aim to help access economic opportunities by 2030?
How many young people does the organization aim to help access economic opportunities by 2030?
What is the primary ingredient in the OM Metabolic Response + Joint Mobility product?
What is the primary ingredient in the OM Metabolic Response + Joint Mobility product?
The reported reduction in virgin plastics is currently at 14.9%.
The reported reduction in virgin plastics is currently at 14.9%.
Purina Pro Plan Veterinary Supplements are designed only for dogs.
Purina Pro Plan Veterinary Supplements are designed only for dogs.
What was the net reduction of GHG emissions reported versus the 2018 baseline?
What was the net reduction of GHG emissions reported versus the 2018 baseline?
What does FortiFlora support in pets?
What does FortiFlora support in pets?
By 2025, the aim is to have 100% assessed ________-free primary supply chains for meat, palm oil, pulp and paper, soy, and sugar.
By 2025, the aim is to have 100% assessed ________-free primary supply chains for meat, palm oil, pulp and paper, soy, and sugar.
The proprietary probiotic supplement by Purina is called __________.
The proprietary probiotic supplement by Purina is called __________.
Match the following Purina products with their primary purpose:
Match the following Purina products with their primary purpose:
What do pets' owners increasingly customize in their pet's nutrition?
What do pets' owners increasingly customize in their pet's nutrition?
Water is a crucial element for both dogs and cats.
Water is a crucial element for both dogs and cats.
In pets, ________ disorders are common and can relate to food allergies.
In pets, ________ disorders are common and can relate to food allergies.
What was the profit for the year attributable to shareholders of the parent in 2023?
What was the profit for the year attributable to shareholders of the parent in 2023?
The underlying trading operating profit as a percentage of sales increased from 17.1% in 2022 to 17.3% in 2023.
The underlying trading operating profit as a percentage of sales increased from 17.1% in 2022 to 17.3% in 2023.
What was the total equity reported for 2023?
What was the total equity reported for 2023?
In 2023, Nestlé's operating cash flow was _____ million CHF.
In 2023, Nestlé's operating cash flow was _____ million CHF.
Match the following financial metrics with their corresponding values for 2023:
Match the following financial metrics with their corresponding values for 2023:
What was the basic earnings per share for Nestlé in 2023?
What was the basic earnings per share for Nestlé in 2023?
The ratio of net financial debt to total equity decreased in 2023.
The ratio of net financial debt to total equity decreased in 2023.
What was the percentage of free cash flow as reported in 2023?
What was the percentage of free cash flow as reported in 2023?
The trading operating profit in 2023 was _____ million CHF.
The trading operating profit in 2023 was _____ million CHF.
Which of the following figures reflects the underlying trading operating profit for 2022?
Which of the following figures reflects the underlying trading operating profit for 2022?
Study Notes
Financial Overview
- Total underlying trading operating profit reached CHF 93.0 billion, rising by 7.2%.
- Underlying trading operating profit margin stood at 17.3%, a 40 basis points increase in constant currency.
- Trading operating profit amounted to CHF 14.5 billion, with a margin of 15.6%, up by 190 basis points in constant currency.
- Earnings per share reported at CHF 4.24, marking a 23.7% increase; adjusted for constant currency, the increase was 8.4%.
- Operating cash flow was CHF 15.9 billion, representing 32.1% of net financial debt.
- Free cash flow totaled CHF 10.4 billion.
- Proposed dividend was CHF 3.00, showcasing a 1.7% increase.
Business Philosophy
- Nestlé emphasizes nutrition, health, and wellness to enhance the quality of life for individuals and pets.
- A commitment to "Creating Shared Value" focuses on delivering benefits for shareholders and society simultaneously.
- Long-term success is anchored in employee support, consumer trust, and community engagement.
- Advancements in regenerative food production aim to protect and restore natural resources while supporting farmers.
Sustainability Initiatives
- Nestlé strives for 100% of key raw materials to be responsibly sourced by 2030, with 36.2% achieved in 2023.
- Innovations include redesigned packaging to minimize waste, such as reducing plastic use with Malher Bouillon and Nescafé products.
- Reforestation projects within sourcing regions are crucial for reducing carbon footprint and promoting sustainable practices.
- The company's shipping innovations, such as reusable shipping boxes, have saved significant amounts of plastic waste.
Pet Nutrition and Supplements
- Increasing trend for customized pet nutrition led to new offerings in pet supplements, toppers, and specialized snacks.
- Purina Pro Plan introduced advanced nutritional products for dogs focused on supporting joint health and weight management.
- Probiotic supplements, like FortiFlora, are recommended by veterinarians, targeting digestive health in pets.
Food Products and Culinary Solutions
- The prepared dishes and cooking aids category, featuring brands like Maggi and Stouffer’s, provides essential meal solutions catering to a variety of tastes.
- New product lines, such as Maggi Veg, offer plant-based options that are nutritious and designed for convenience in independent meals.
- Totole Recipe Solutions expanded its range to meet the needs of single-person households in China, reflecting a trend toward tailored meal options.
Ninho Farms and Milk Production
- 179 Ninho farms achieved the gold category status, supplying 17 million liters of milk monthly.
- By 2025, the goal is to source 30% of Brazilian milk from gold-category dairy farms.
- Nationwide communication efforts include Ninho Forti+ commemorative packs to educate consumers on best farming practices focused on animal welfare, soil, and water.
- Farmers receive support from Nestlé's Regenera technicians, a WhatsApp community, and monthly YouTube sessions to enhance sustainability practices.
Confectionery Sector
- Sales in the confectionery segment reached 8.1 billion CHF with a 16.8% UTOP margin.
- Brands include KitKat and various regional favorites, contributing to market engagement.
- Nescafé has introduced coffee to over 30 million Indian households, expanding from local taste preferences.
- The Nanjangud roastery specializes in green coffee beans tailored for Indian consumers.
Nescafé's Role in Coffee Culture
- Nescafé's initiatives have captured non-coffee drinkers, promoting coffee as a beverage of choice.
- The Nescafé Plan 2030 focuses on sustainability and enhancing quality.
- A digital platform facilitates quality document management for over 7000 suppliers across 40 markets.
Innovations in Product Technology
- Nestlé N3 milk, launched in 2023 in China, offers low lactose content, fewer calories, and beneficial prebiotic fibers promoting gut health.
- Clinical studies suggest N3 milk fosters growth of bifidobacteria, essential for digestive health, enriching its nutritional profile.
S.Pellegrino and Culinary Arts
- S.Pellegrino celebrates 160 years with a limited-edition glass bottle designed by Philippe Starck, capitalizing on the flavored sparkling waters market.
- The S.Pellegrino Young Chef Academy supports future gastronomic talents and nurtures sustainable dining through partnerships like Food for Soul to address food waste.
Financial Overview
- Total sales in 2023 were 92,998 million CHF, slightly down from 94,424 million CHF in 2022.
- Profit for the year attributable to shareholders rose significantly to 11,209 million CHF, marking a 12.1% profit margin.
- Operating cash flow increased to 15,941 million CHF, improving overall financial health and gearing ratio trends.
- Basic earnings per share witnessed a rise, reaching CHF 4.24, while underlying earnings remained stable at CHF 4.80.
Climate Commitments
- Target to reduce greenhouse gas (GHG) emissions by 20% by 2025 and 50% by 2030 from 2018 levels.
- Achieved a 13.58% net reduction in GHG emissions compared to the 2018 baseline.
- Aims for net zero emissions by 2050 at the latest.
Nature Conservation
- Commitment to 100% assessed deforestation-free supply chains for key products (meat, palm oil, pulp and paper, soy, sugar) by 2022, and for cocoa and coffee by 2025.
- Currently assessed 93.4% of primary supply chains as deforestation-free.
Packaging Sustainability
- Aim to reduce virgin plastic use by one third compared to 2018 levels by 2025.
- Achieved a 14.9% reduction in virgin plastics up to now.
Diversity, Equity, and Inclusion
- Women hold 46.4% of management positions, indicating a substantial representation in leadership roles.
Youth Empowerment
- Target to provide economic opportunities for 10 million young people globally by 2030.
- Successfully helped 7.74 million young people access opportunities since 2017.
Health and Nutrition Initiatives
- Introduced N3 milk products to support healthy aging, addressing lactose sensitivity and overall wellness.
- Emphasis on health solutions that include vitamins, minerals, and probiotics for muscle growth and immunity support.
Food Safety and Quality
- Nestlé prioritizes high standards of food safety and quality across all stages – from design to consumption.
- Over 4.1 million analytical tests conducted for food safety and quality management in 2023.
Financial Overview
- Sales for 2023: CHF 92,998 million, a decrease from CHF 94,424 million in 2022.
- Underlying trading operating profit for 2023: CHF 16,053 million, slightly down from CHF 16,103 million.
- Net profit attributed to shareholders increased from CHF 9,270 million in 2022 to CHF 11,209 million in 2023, reflecting a profit margin rise from 9.8% to 12.1%.
Balance Sheet and Cash Flow
- Total equity decreased from CHF 42,792 million in 2022 to CHF 36,387 million in 2023.
- Net financial debt rose to CHF 49,638 million, with a gearing ratio of 136.4%.
- Operating cash flow improved to CHF 15,941 million, representing 32.1% of net financial debt.
Stock Information
- Basic earnings per share increased from CHF 3.42 in 2022 to CHF 4.24 in 2023.
- Underlying earnings per share held steady at CHF 4.80.
- The Board of Directors proposed a dividend increase.
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Description
This quiz covers key financial metrics including underlying trading operating profit in billion CHF and margin changes. It highlights the growth rates and basis points adjustments in the context of financial performance. Test your understanding of financial analysis concepts and their implications.
