Based on Nestle's 2021 summary report released on February 17, 202 - Tài liệu tham khảo | Đại học Hoa Sen

Revenue In 2021
Based on Nestle's 2021 summary report released on February 17, 2022, the company's
organic growth is 7.5%, with actual internal growth of 5.5%. Prices increased 2.0%,
reaching 3.1% in the fourth quarter of 2021.
By product category, coffee is the biggest contributor to organic growth. Driven strongly
by three main brands: Nescafé, Starbucks and Nespresso, sales of Starbucks’s products
increased by 17.1% (CHF 3.1 billion), resulting in a revenue increase of more than CHF
1 billion compared to 2018. Next is the double-digit growth of Purina PetCare, led by
high-end brands such as, Fancy Feast, Purina ONE, Purina Pro Plan and veterinary
products. Based on strong sales growth for Stouffer's, Maggi and Lean Cuisine, this
product group also saw single-digit growth. Plant and vegetarian products also saw
double-digit growth of around CHF 800 million. Due to the Covid-19 epidemic, the
demand for health products was strong, so Nestlé Health Science recorded a double-digit
growth rate. Dairy, Sales in confectionery and Water all have single-digit growth. Infant
Nutrition reported negative growth, impacted by a sales decline in China and lower birth
rates globally. Sales of human milk oligosaccharides (HMOs) products continued to see
robust growth, reaching CHF 1.2 billion.
By channel, organic growth in retail sales was 6.4%. E-commerce sales grew by 15.1%,
reaching 14.3% of total Group sales, with strong momentum in most categories,
particularly Purina PetCare, coffee and Nestlé Health Science. Organic growth in out of-
home channels reached 24.5%, helped by a low base of comparison due to the pandemic.
Retail sales accounted for 6.4% of organic growth, e-commerce was 14.3% (up 15.1%) of
total sales. Organic growth in out-of-home channels increased by 24.5%.
https://www.nestle.com/media/pressreleases/allpressreleases/full-year-results-
2021#:~:text=Organic%20growth%20reached%207.5%25%2C%20with,pricing%20and %20market%20share%20gains.
Picture: Group Sales results in 2021 (source: Nestlé.com)
By geographic, the country that have the most sales percent is United States with CHF
26.260 million and all most the country have positive sales revenue.
https://www.nestle.com/investors/annual-report
Picture: Sales by geographic areas in 2021 (source: Nestlé.com)
The organic growth in zone Asia, Oceania and sub-Saharan Africa 4.2% with RIG of
3.5%, pricing increased 2.2% in the fourth quarter (0.8%). Vietnam is one of the countries
in the zone AOA. https://www.nestle.com/investors/annual-report
Picture: Sales in zone AOA in 2021 (source: Nestlé.com)
Compared to 2020, Total reported revenue increased by 3.3% to CHF 87.1 billion. After a
decline in revenue in 2020, Nestlé will come back strong in 2021 with earnings of $
95,701 million, the highest level from 2017 to 2021. It can be seen that Nestlé has
successfully completed the strategies to help businesses recover after the covid pandemic.
https://www.macrotrends.net/stocks/charts/NSRGY/nestle-sa/revenue Revenue of Nestlé 2017-2021 $97,000 $96,000 $95,701 $95,000 $94,000 $93,805 $93,469 $93,000 $92,000 $91,590 $91,000 $90,321 $90,000 $89,000 $88,000 $87,000 2017 2018 2019 2020 2021
Picture: Revenue of Nestlé 2017-2021 (source: macrotrends.net) In 2022
Based on full year reports of 2022, which release on February 16, organic growth was
8.3% and due to the effects of inflation, pricing increased to 8.2%. Following a high
comparable base in 2021, RIG is positive 0.1%, nestle restricts supplies and focuses on
optimizing investment portfolios. In developed markets, organic growth was driven by
prices at 7.1%. Emerging markets reach 10% thanks to price and RIG.
Picture: Group Sales results in 2021 (source: Nestlé.com)
Unlike in 2021, the product with the highest organic growth is Purina PetCare. Coffee
also brought high single-digit growth, thanks to the recovery of out-of-home channels,
which led to wide-ranging growth across brands and geographies. Sales of Starbucks
reached 3.6 billion CHF (up 12.9%), compared to 2018 increased by more than CHF 1.5
billion. Some industries with double-digit growth are: Infant Nutrition, Water and Garden
Gourmet in Europe. Industries with single-digit growth in 2022 are: Confectionery with
KitKat strength, Dairy, Prepared dishes and cooking aids - low growth but Maggi still
strong growth, vegetarian and plant-based food, Nestlé Health Science. In Southeast Asia
led by brands Nescafé, Maggi and Milo with single-digit growth.
With retail channels organic growth remained strong at 7.2%. E-commerce channel still
increased to 9.2%, accounting for 15.5% of total sales. After the pandemic, non-family
channels grew naturally at 23.5%, surpassing the pre-pandemic threshold.
Total revenue in 2022 is reported to increase by 8.4% to CHF 94.4 billion.
https://www.nestle.com/media/pressreleases/allpressreleases/full-year-results-2022 Results
2021 is a challenging year but also an opportunity for businesses selling consumer
products. Because of the pandemic, consumers often prioritize shopping for everyday
consumer products such as drinking water, milk, etc. Therefore, this is an opportunity for
businesses to boost sales. However, the economic slowdown is also a challenge for
businesses, when consumers are not economical enough to shop and with inflation. They
are forced to change the selling price as well as the business strategy.
In Vietnam, due to the impact of the epidemic, consumers' buying behavior has changed a
lot. They always try to buy a lot of consumer products to avoid the blockade cases again.
After the epidemic is under control around mid-2021, people return to shopping and their
needs tend to buy health care products. Moreover, after the period of social distancing,
consumers always want convenience. Therefore, at this time, items associated with
keywords such as health, convenience often receive the attention of consumers.
Moreover, after the pandemic, everyone has a sense of helping the community, so this can
be a strong point of Nestlé. Because, so far, Nestlé has always had a strategy to create
common value for the community and most of their products are quality-oriented with the
slogan "good food, good life". That's why, despite being affected by the epidemic around
the beginning of 2021, at the end of the year, Nestlé still has better business results than
in 2020.That is thanks to the growth of the market again at the end of the year. Sales target arrival time
In 2021, coffee revenue will reach CHF 3.1 billion with strong growth of 3 main brands:
Nescafé, Nespresso and Starbucks. The zone AOA accounts for about 25.5% of the
Group's total revenue. And in that, Southeast Asia accounts for about 33.7% of this zone's
revenue. Since then, Nestlé's coffee sales in Southeast Asia have been CHF 266,4 million (VDN 6,811 billion).
After studying the coffee market in Southeast Asia, we estimate Nescafé accounts for
about 38% of coffee sales. According to Nestlé's full-year report in 2022, coffee has a
single-digit growth rate. After studying macroeconomics and microeconomics, we
estimate it to be 8% in 2022 and 9% in 2023. Detail:
The revenue of Nescafé in Southeast Asia in 2021: 38%*6,811= 3,065 billion VND
The revenue in Southeast Asia in 2022: 3,065*1.08%= 3,310.2 billion VND
The revenue in Southeast Asia in 2023: 3,310.2*1.09%= 3,608.2 billion VND
The sales plan will be implemented in Ho Chi Minh City and based on the population, we have:
Southeast Asia's population: 685,550,520 people
population in Ho Chi Minh city: 9,320,866 people
The revenue in Ho Chi Minh city in 2023: 3,608.2 * (9,320,866 / 685,550,520) = 49.1 billion VND