Nestlé has announced a decline in its pet care sales for the first half of 2023, with total sales dropping to CHF 9.23 billion, a decrease of 2.3% compared to the same period last year. The company attributes the slowdown to weaker consumer confidence and challenging market conditions.
In the second quarter, pet care sales fell by 7% to CHF 4.53 billion. Despite these challenges, Nestlé cited positive growth from specific brands like Purina ProPlan, Felix, Purina ONE, and Tidy Cats, as well as strong performance from its super-premium brands.
“The PetCare segment delivered 1.3% organic growth, reflecting a general slowdown in category growth. Growth was led by our billionaire brands, including Purina Pro Plan, Felix, Purina ONE and Tidy Cats. Our super-premium science brands continue to show strong momentum,” the company noted.
Sales in the Zone Americas reached CHF 16.95 billion, down 4.9%, with a notable decline in dog brands offsetting growth in the cat segment. In Zone Asia, Oceania, and Africa, sales amounted to CHF 10.44 billion, a decrease of 1.4%, as the company sought to adapt its business model in Greater China.
Meanwhile, Zone Europe saw a slight increase in sales, reporting CHF 8.47 billion, a gain of 1.5%, primarily driven by pricing strategies in response to inflation.
Overall, Nestlé’s sales for the first half of the year fell to CHF 44.23 billion, reflecting a 1.8% decrease. The company’s operating profit also declined to CHF 7.29 billion, a drop of 7.1% from the prior year.
“We are executing our strategy to accelerate performance and transform for the future,” said Laurent Freixe, Nestlé’s CEO. “We are accelerating our category growth and improving our market share through better execution and increased investment, funded through a relentless pursuit of efficiency.”
Freixe also expressed confidence in the company’s future, stating, “We have maintained our guidance for 2025, while recognising increased macroeconomic risks and uncertainties. We remain confident that our actions to drive performance and transformation will deliver our medium-term growth and profit ambitions.”
