Latest news with #AccesstoNutritionInitiative
Yahoo
29-04-2025
- Business
- Yahoo
Nestlé to change disclosures on ‘healthiness' of sales
Nestlé is changing the way it reports to investors and the wider market on the make-up of its sales and how healthy they are. In a LinkedIn post, Nestlé CEO Laurent Freixe said the company will provide additional data 'aligned with the scope' of the Access to Nutrition Initiative (ATNi), starting from its next non-financial report. The Swiss food giant will also introduce a 'sales weighted average' metric for both specific product categories and its entire portfolio, Freixe added. He confirmed Nestlé will continue to use the Health Star Rating (HSR) system, endorsed by governments in Australia and New Zealand, as the 'basis' of its nutrition profiling. The move has been 'welcomed' by lobby group ShareAction, which has in the past been critical of how Nestlé measures and reports on the make-up of its sales. ShareAction said Nestle had not been following the HSR guidance on what products should be excluded from its reporting, including coffee products. The company will continue to report separately on its specialized nutrition, pet care and pure coffee product ranges, but it will also provide a breakdown of the healthiness of its remaining sales, in line with ATNi guidelines. Garance Boullenger, healthy markets initiative lead at ShareAction, said: "What investors want now is to see Nestlé set an ambitious target to sell more healthier food. With a tangible commitment in place, the food giant could reassure its investors that it is working to adapt its business away from its current risky over-reliance on unhealthy products." In a statement, Nestlé disclosed that products with a Health Star Rating of 3.5 and above made up 38% of its net sales in 2024 without pet care and non-food products, compared to 30% with them. Products with a Health Star Rating between 1.5 and 3.5 represented 20% of net sales without, and 16% with pet care and non-food products. Products with a rating below 1.5 accounted for 21% of net sales without, and 17% with pet care and non-food products. The KitKat chocolate and Maggi sauce owner said it is aiming to increase the sales of more nutritious products by SFr20–25bn ($24.22-30.28bn) by 2030. In March 2023, the company committed to benchmarking its products against the HSR system, moving away from a proprietary internal methodology. At that time, Nestlé reported that 37% of product sales (excluding pet food) reached an HSR score of 3.5 or higher in 2022. The figure increased to 57% when specialised nutrition products, such as infant formula, were included. Despite welcoming the increased transparency, at the time ShareAction criticised the company saying it is 'still far too reliant on the sale of less healthy food and drink products'. Later that year, a group of investors, co-ordinated by ShareAction, accused the Cerelac baby food maker of having a 'flawed approach' as it sought to increase the sales of its healthier products. ShareAction also raised concerns over Nestlé's classification of certain products – such as coffee and baby foods – as nutritious, despite these items not being subject to government-endorsed nutrient profiling models. In March last year, a coalition of shareholders coordinated by ShareAction filed a resolution, urging Nestlé to 'dramatically improve' the proportion of healthy products in its sales. The resolution called for the company to set a target based on an internationally recognised standard. However, it was rejected by a majority of shareholders during the annual general meeting in April, with only 11% voting in favour. "Nestlé to change disclosures on 'healthiness' of sales" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
03-03-2025
- Business
- Yahoo
Grupo Bimbo SAB de CV (BMBOY) Q4 2024 Earnings Call Highlights: Record Growth and Strategic ...
Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Grupo Bimbo SAB de CV (BMBOY) achieved record top-line growth in 2024, driven by strong performance in Mexico and the EAA regions. The company completed five strategic acquisitions in profitable and growing markets like Eastern Europe and North Africa, enhancing its global profile. Grupo Bimbo SAB de CV (BMBOY) reached 97% renewable electricity globally, with 100% renewable electricity in 28 out of 35 operating countries. The company was recognized for its commitment to global nutrition and health, ranking 4th among food companies evaluated by the Access to Nutrition Initiative. Sales in Latin America increased by 13.8%, with strong growth in countries like Argentina, Paraguay, El Salvador, and Panama. In North America, the topline declined by 5.7% due to a weak consumption environment and strategic exit from certain non-branded businesses. The adjusted margin in North America contracted by 390 basis points, primarily due to strategic investments and one-time charges related to bakery closures. Grupo Bimbo SAB de CV (BMBOY) faced a challenging consumer environment in North America, with prolonged inflationary pressures affecting consumption. The company is still awaiting regulatory approvals for acquisitions in Brazil and the Balkans, which could delay expansion plans. Grupo Bimbo SAB de CV (BMBOY) anticipates a challenging first half of 2025 due to ongoing investments in North America and a strained consumer environment. Warning! GuruFocus has detected 5 Warning Sign with BMBOY. Q: Can you elaborate on the expected benefits from your investments in North America, particularly in the second half of 2025? A: (Diego Aciola, CFO) We anticipate seeing benefits from our investments in North America starting in the second half of 2025. The first half will be challenging due to tough comparisons and ongoing investments. However, we expect to see improvements as the benefits from these investments begin to materialize, alongside a more favorable comparison base. Q: How much of your Mexican operations are exposed to potential tariffs on exports to the US? A: (Rafael Sameer, CEO) Less than 10% of our US revenues come from Mexican exports, so the impact of potential tariffs would be minimal. We have contingency plans to mitigate any impact, including maximizing local production in the US. Q: What are the main drivers behind the 2% year-over-year growth in Mexico's top line? A: (Rafael Sameer, CEO) The growth is primarily driven by volume increases, supported by innovation and a strong market presence. We have been prudent with pricing strategies, focusing on volume growth through new product introductions and market expansion. Q: Can you provide more details on the competitive environment in North America and any changes in consumer trends? A: (Mark Bendix, Executive Vice President) We are seeing a bifurcation in consumer behavior, with economically stressed consumers opting for value offerings and more affluent consumers choosing premium products. Our focus is on expanding our value segment offerings and premium products to capture these trends. Q: What is your strategy for driving growth in North America in 2025, and are there any plans for M&A activities? A: (Mark Bendix, Executive Vice President) Our strategy includes focusing on health-conscious consumers, expanding capacity and distribution, and optimizing our asset base. We are also exploring M&A opportunities that align with our strategic goals, although no specific plans can be disclosed at this time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
