Financial Analysis Overview

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Questions and Answers

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?

3.00

10.4

4.24 (correct)

16.1

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?

+1.7% Signup and view all the answers

What was the trading operating profit in CHF?

14.5 billion Signup and view all the answers

What percentage of net financial debt does the operating cash flow represent?

32.1% Signup and view all the answers

What was the increase in underlying trading operating profit margin in basis points?

+40 basis points Signup and view all the answers

What is the stated goal of the business described?

Helping people and pets live happier, healthier lives Signup and view all the answers

What percentage of UTOP margin did Nestlé achieve in the prepared dishes and cooking aids category?

12.5% Signup and view all the answers

What is the primary goal for 2030 regarding the sourcing of materials?

To responsibly source 100% of specific materials Signup and view all the answers

Which brand is not mentioned as part of Nestlé’s prepared dishes and cooking aids?

Kraft Signup and view all the answers

What new product line did Nestlé introduce in Chile and Germany?

Maggi Veg Signup and view all the answers

Which Nestlé product was redesigned to save 156 tonnes of plastic annually?

Malher Bouillon Signup and view all the answers

What sustainability initiative is linked to monitoring trees planted in sourcing regions?

Decarbonizing operations Signup and view all the answers

What is a key feature of the expanded Totole Recipe Solutions range in China?

It provides four new single-portion options. Signup and view all the answers

What aspect do the products in Nestlé's prepared dishes and cooking aids category focus on?

Daily essentials for consumers Signup and view all the answers

What innovation was implemented to reduce plastic usage in China?

Reusable shipping boxes and pallet bands Signup and view all the answers

Which of the following regions is mentioned as having a collaboration for reusable packaging?

Latin America Signup and view all the answers

What percentage of responsible sourcing was achieved by Nestlé in 2023?

36.2% Signup and view all the answers

What effect did the Earthworm Foundation have on Nestlé's supply chain?

Significant reduction in deforestation Signup and view all the answers

What is the key feature of the redesigned packaging for Nestlé's products mentioned?

Easier recycling in local systems Signup and view all the answers

What is the main focus of Nestlé's value creation model?

Creating shared value for shareholders and society Signup and view all the answers

How does Nestlé support regenerative food production?

By helping protect and restore natural resources Signup and view all the answers

What approach is emphasized in Nestlé’s culture when engaging with stakeholders?

Direct engagement and connection with stakeholders Signup and view all the answers

Which aspect of AI and data science is highlighted in supporting Nestlé’s innovation?

Predicting and revealing consumer demands Signup and view all the answers

What is one of Nestlé's commitments in response to consumer expectations?

Delivering products to market faster Signup and view all the answers

Who holds the position of Chief Executive Officer at Nestlé?

Mark Schneider Signup and view all the answers

Which of the following best captures the essence of 'Creating Shared Value' at Nestlé?

Balancing shareholder interests and societal needs Signup and view all the answers

What role do employees play in Nestlé's operations according to the content?

They are encouraged to connect with various stakeholders Signup and view all the answers

What nutritional benefit does the new OM Metabolic Response + Joint Mobility provide for dogs?

Helps dogs lose fat while maintaining muscle Signup and view all the answers

Which ingredient in the OM Metabolic formula supports joint health?

Glucosamine Signup and view all the answers

What is the primary purpose of Purina Pro Plan Veterinary Supplements?

To support health and address specific conditions Signup and view all the answers

What aspect of pet nutrition are many owners customizing for their pets?

Nutritional supplements, toppers, and snacks Signup and view all the answers

What common issue in cats is addressed by Purina's products according to the content?

Dehydration due to dislike of still water Signup and view all the answers

Which product is identified as the #1 U.S. recommended probiotic by veterinarians?

FortiFlora Signup and view all the answers

Which of the following is NOT mentioned as a health-focused nutrition option by Purina?

Supplements for cognitive enhancement Signup and view all the answers

What condition do digestive disorders in pets commonly relate to?

Gastrointestinal issues Signup and view all the answers

What is the primary focus of Nescafé's strategy in India?

Expanding coffee availability and quality Signup and view all the answers

Nescafé’s coffee is manufactured using imported coffee beans only.

False Signup and view all the answers

How many Indian households has Nescafé introduced its coffee to over the past seven years?

30 million Signup and view all the answers

Nescafé is increasingly available across the country in __________ retail outlets.

three million Signup and view all the answers

What is one of the key benefits that Nescafé aims to provide through its marketing?

Recruiting non-coffee drinkers Signup and view all the answers

Match the following aspects with their corresponding Nescafé initiatives:

Product Quality = Focus on high standards for consumer satisfaction Nescafé Plan 2030 = Actions supporting sustainable impact Retail Expansion = Increasing outlets to reach more consumers Target Audience = Capturing coffee drinkers and non-drinkers Signup and view all the answers

The Nescafé brand has each product tailored to suit global taste preferences.

False Signup and view all the answers

What has Nescafé prioritized to captivate the loyalty of its target audience?

Quality and communication of relevance Signup and view all the answers

How many liters of milk do the gold category Ninho farms supply per month?

17 million liters Signup and view all the answers

Ninho aims to source 50% of Brazilian milk from gold-category dairy farms by 2025.

False Signup and view all the answers

What are the three pillars that Ninho communicates best farming practices around?

animal welfare, soil and water Signup and view all the answers

Ninho's communication efforts include using _____ commemorative packs.

Forti+ Signup and view all the answers

Which of the following brands is part of Nestlé's confectionery business?

KitKat Signup and view all the answers

Match the following Ninho initiatives with their descriptions:

Forti+ packs = Communicate best farming practices WhatsApp farmer community = Empower farmers for improvement Visits from Regenera technicians = Support sustainable practices Monthly YouTube sessions = Educate on sustainability Signup and view all the answers

The Nestlé Annual Review 2023 includes information about agricultural sustainability.

True Signup and view all the answers

What percentage of UTOP margin did Nestlé's confectionery business achieve?

16.8% Signup and view all the answers

Who is the visionary creator behind the new limited edition glass bottle for Perrier?

Philippe Starck Signup and view all the answers

S.Pellegrino focuses solely on bottled water and does not engage in culinary education.

False Signup and view all the answers

What initiative does S.Pellegrino partner with to help prevent food waste?

Food for Soul Signup and view all the answers

The S.Pellegrino Young Chef Academy connects talented young chefs with influential members of the __________ world.

gastronomic Signup and view all the answers

Match the following S.Pellegrino initiatives to their purposes:

S.Pellegrino Young Chef Academy = Mentoring young chefs Food for Soul = Preventing food waste Why Waste? = Raising awareness about food waste Mediterranean blends = Flavored sparkling waters Signup and view all the answers

How many chefs from various nationalities belong to the S.Pellegrino Young Chef Academy community?

2000 Signup and view all the answers

S.Pellegrino's new Mediterranean blends range was launched globally before its introduction in France.

False Signup and view all the answers

What is the goal of S.Pellegrino's initiatives for the future of gastronomy?

To nurture a culture of responsible dining. Signup and view all the answers

What new product introduced by Nestlé in 2023 is made from cow’s milk and contains beneficial prebiotic fibers?

Nestlé N3 Milk Signup and view all the answers

Nestlé N3 milk is high in lactose content.

False Signup and view all the answers

Name one market where Nestlé has launched its eB2B platforms.

Brazil Signup and view all the answers

Nestlé N3 milk is designed to support the growth of beneficial __________ in the gut.

bifidobacteria Signup and view all the answers

Match the following Nestlé products with their characteristics:

Nestlé N3 milk = Contains prebiotic fibers eB2B platforms = Supports supplier management Innovations in Brazil = Tailored for local consumers Skimmed milk product = High in protein Signup and view all the answers

How many active suppliers does the Nestlé Supplier Portal currently support?

7000 Signup and view all the answers

The eB2B platform BEES is a partner of Nestlé.

True Signup and view all the answers

What percentage fewer calories does Nestlé N3 milk have compared to regular milk?

15% Signup and view all the answers

What was the profit for the year attributable to shareholders of the parent in 2023?

11,209 million CHF Signup and view all the answers

The underlying trading operating profit decreased from 2022 to 2023.

True Signup and view all the answers

What was the ratio of net financial debt to total equity in 2023?

136.4% Signup and view all the answers

The trading operating profit as a percentage of sales in 2023 was _____%.

15.6 Signup and view all the answers

Match the following categories with their respective capital additions in millions of CHF for 2023:

Prepared dishes = 7,159 Beverages = 8,264 Confectionery = 6,570 Cereals = 10,403 Signup and view all the answers

Which figure represents the operating cash flow for 2023?

15,941 million CHF Signup and view all the answers

The free cash flow increased from 6,570 million CHF in 2022 to 10,403 million CHF in 2023.

True Signup and view all the answers

What is the basic earnings per share in CHF for 2023?

4.24 Signup and view all the answers

The net financial debt for Nestlé in 2023 was _____ million CHF.

49,638 Signup and view all the answers

What was the total equity reported for Nestlé in 2023?

36,387 million CHF Signup and view all the answers

What is one of the notable components of the N3 milk products?

Probiotics Signup and view all the answers

The Nescafé Plan 2030 aims to increase greenhouse gas emissions from farming.

False Signup and view all the answers

What calorie limit is set for children's confectionery and ice cream portions as of July 2023?

110 kilocalories Signup and view all the answers

The N3 milk products are designed for people with __________ sensitivity.

lactose Signup and view all the answers

Which of the following best describes the focus of Nestlé's initiatives?

Enhancing quality of life for everyone Signup and view all the answers

Match the following products with their health benefits:

N3 milk = Supports bone health Nescafé = Reduces GHG emissions Children's confectionery = 110 kilocalories or less Purina products = Addresses digestive disorders Signup and view all the answers

Nestlé research is conducted only in Switzerland.

False Signup and view all the answers

What do Nescafé farmers aim to improve through regenerative agriculture practices?

Farmer income and environmental conditions Signup and view all the answers

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?

59% Signup and view all the answers

Nestlé excludes its pet care portfolio from the quality and food safety assessment.

True Signup and view all the answers

What is the fundamental approach Nestlé takes to ensure food safety and quality?

End-to-end approach Signup and view all the answers

Nestlé provides guidance including recipes, menu planning, and __________ for nutritious choices.

healthy lifestyle tips Signup and view all the answers

Match the following aspects related to Nestlé with their descriptions:

Health Star Rating = Indicates nutritious products Quality Assurance Centers = Conducts analytical tests for safety Creating Shared Value = Nestlé's approach to achieving societal goals Regenerative agriculture = Sustainable farming practices Signup and view all the answers

Which of the following is a key component of Nestlé's commitment to food quality?

High standards of food safety and quality Signup and view all the answers

Nestlé's food safety and quality systems are static and do not adapt to regulatory changes.

False Signup and view all the answers

In how many analytical tests did Nestlé's Quality Assurance Centers perform in 2023?

4.1 million Signup and view all the answers

What is the target reduction in greenhouse gas emissions by 2030?

50% Signup and view all the answers

The goal for primary supply chains is to achieve 100% assessed deforestation-free status by 2025.

True Signup and view all the answers

What is the percentage of management positions held by women?

46.4% Signup and view all the answers

The aim is to reduce virgin plastics by one third by ________.

2025 Signup and view all the answers

Match the following goals with their respective target years:

Greenhouse gas emissions reduction = 2030 Deforestation-free supply chains = 2025 Virgin plastic reduction = 2025 Access to economic opportunities for youth = 2030 Signup and view all the answers

How many young people does the organization aim to help access economic opportunities by 2030?

10 million Signup and view all the answers

What is the primary ingredient in the OM Metabolic Response + Joint Mobility product?

Long-chain omega-3 fatty acids Signup and view all the answers

The reported reduction in virgin plastics is currently at 14.9%.

True Signup and view all the answers

Purina Pro Plan Veterinary Supplements are designed only for dogs.

False Signup and view all the answers

What was the net reduction of GHG emissions reported versus the 2018 baseline?

13.58% Signup and view all the answers

What does FortiFlora support in pets?

Digestive health Signup and view all the answers

By 2025, the aim is to have 100% assessed ________-free primary supply chains for meat, palm oil, pulp and paper, soy, and sugar.

deforestation Signup and view all the answers

The proprietary probiotic supplement by Purina is called __________.

FortiFlora Signup and view all the answers

Match the following Purina products with their primary purpose:

OM Metabolic Response + Joint Mobility = Weight loss support FortiFlora = Digestive health support Purina Pro Plan = Customized nutrition options Veterinary Diets = Health-focused nutrition Signup and view all the answers

What do pets' owners increasingly customize in their pet's nutrition?

Supplements and snacks Signup and view all the answers

Water is a crucial element for both dogs and cats.

True Signup and view all the answers

In pets, ________ disorders are common and can relate to food allergies.

digestive Signup and view all the answers

What was the profit for the year attributable to shareholders of the parent in 2023?

CHF 11,209 million Signup and view all the answers

The underlying trading operating profit as a percentage of sales increased from 17.1% in 2022 to 17.3% in 2023.

True Signup and view all the answers

What was the total equity reported for 2023?

CHF 36,387 million Signup and view all the answers

In 2023, Nestlé's operating cash flow was _____ million CHF.

15,941 Signup and view all the answers

Match the following financial metrics with their corresponding values for 2023:

Sales = CHF 92,998 million Operating cash flow = CHF 15,941 million Net financial debt = CHF 49,638 million Profit attributable to shareholders = CHF 11,209 million Signup and view all the answers

What was the basic earnings per share for Nestlé in 2023?

CHF 4.24 Signup and view all the answers

The ratio of net financial debt to total equity decreased in 2023.

False Signup and view all the answers

What was the percentage of free cash flow as reported in 2023?

10,403 Signup and view all the answers

The trading operating profit in 2023 was _____ million CHF.

14,520 Signup and view all the answers

Which of the following figures reflects the underlying trading operating profit for 2022?

CHF 16,103 million Signup and view all the answers

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.