Nestle, the renowned food and drink company behind beloved brands like Nespresso and KitKat, has recently experienced a slowdown in revenue growth.

Shoppers have been deterred by price hikes, leading to decreased sales. However, Nestle has taken steps to address this issue by reducing pricing inflation and optimizing its supply chain costs.

In 2023, Nestle achieved organic growth of 7.2%, but this was primarily fueled by a 7.5% increase in pricing rather than an increase in product volume. Unfortunately, this growth fell short of market analysts’ expectations.

As a result, Nestle anticipates slower organic growth of around 4% in the coming year due to reduced levels of price inflation. Nevertheless, the company remains focused on improving profits and increasing sales volume.

Nestle’s performance in Europe was more positive, with organic sales growth of 8.2% driven by a 10.6% increase in prices. The company saw strong demand for Purina PetCare products, including popular brands like Felix and Gourmet.

Additionally, Nestle experienced “high single-digit growth” in confectionery, with KitKat sales performing exceptionally well.

Mark Schneider, Nestle’s CEO, acknowledged the challenges faced by consumers due to unprecedented inflation over the past two years. He emphasized that despite these difficulties, Nestle has achieved strong organic growth, improved margins, and increased cash flow generation.

Looking ahead to 2024, Nestle will focus on volume and mix-led growth, supported by enhanced brand initiatives. The company aims to deliver value to consumers through active innovation, premium options, affordability, and more nutritious choices.