• by Erik Oster , July 27, 2023

Today Nestlé released its financial results for the first half of 2023, reporting organic growth of 8.7% -- including 10% organic growth in North America.

Those numbers exceeded analyst expectations for the company’s organic growth in the first half of the year of 8.1%. Nestlé’s stock price rose around 1.5% on the day from its closing price of $121.97 yesterday, as of publication time.

The company also became the latest CPG giant to adjust its full-year guidance on the strength of its financial performance in the first half, increasing its forecast organic sales growth to 7%-8%.

Coca-Cola reported an updated outlook increasing its anticipated growth for 2023 yesterday, while Pepsi announced a similar update earlier this month.

“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,” Nestlé CEO Mark Schneider said in a statement accompanying the announcement.

“At-home consumption post-COVID has now normalized, removing a growth drag on some of our categories,” Schneider explained in the statement. “Out-of-home channels continue to see strong growth momentum.”

The company reported organic growth in ecommerce sales at 13.5% for the period.

It also noted that Purina PetCare was the strongest category contributor, with double-digit growth across its Friskies, Purina ONE, and Purina Pro Plan brands. The confectionary category also saw double-digit growth, with a strong sales performance from its Kit-Kat brand as a leading contributing factor.

The news follows Nestlé reducing its ownership stake in D2C meal-delivery platform Freshly last month through a merger with food manufacturer Kettle Cuisine. It also follows some major personnel changes for the company, which appointed  Anna Manz as its new chief financial officer in May, and hired Stephanie Pullings Hart as deputy head of operations, effective July 1, with plans to take over for head of operations Magdi Batato upon his retirement at the end of the year.