Nestle 2Q16 Earnings Call Notes

Nestlé (NSRGY) Q2 2016 Results

François Roger

Pricing challenging

As anticipated, the pricing environment remains challenging. We had deflation in developed markets and low commodity pricing overall. We expect stronger pricing in H2 though. We started to take selective price increases in some categories and geographies. ”

China food and beverage decelerated to zero growth

“In China, the food and beverage market overall saw its growth decelerating to basically zero growth. In that context, we had solid performance for products like Nescafe soluble coffee, chocolate with good product renovation and good retail execution, a good example of it is the attractive performance that we had with Shark wafer. ”

China nutrition demand clearly slowing

“In China, the demand is clearly slowing. The market itself in China used to enjoy a double-digit growth and is now into low single digits. In our premium on mainstream ranges where we have NAN and S-26 GOLD, we clearly see a softer demand with much more price competition, and the situation is certainly little bit more complicated there, while on the other hand in the super-premium segment where we are represent with ILLUMA, we are growing north of 30%. Overall in China for nutrition, we are slightly gaining market share.”