Nestle SA (OTCPK: NSRGY) reported a nine-month FY23 revenue decline of 0.4% Y/Y to CHF 68.8 billion (US$76.7 billion), with a negative impact of foreign currency translations of 7.4% and acquisitions of 0.8%.

Organic revenue grew 7.8% Y/Y, with pricing of 8.4% (below the average analyst estimate of 8.6%, per Reuters) and real internal growth (RIG) of -0.6% (in line with street view).

In emerging markets, organic revenue rose 9% Y/Y, led by pricing and a slightly positive RIG. 

Also, the company divested its peanut allergy treatment business, Palforzia, to Stallergenes Greer in the quarter.

Nestle is seeing the benefits of "portfolio optimization initiatives and increasing marketing investments" behind its "billionaire brands," CEO Mark Schneider said. "These steps underpin our confidence that real internal growth, the sum of volume and mix, will turn positive in the second half of the year and again become the main driver of growth going forward," he added.

Nestlé has also "further strengthened" its nutrition strategy, Schneider explained. "Actions include providing clear, front-of-pack portion guidance, transparency on the nutritional value of our products and leading marketing-to-children policies," he said. "We also set an ambitious target to grow the sales of our more nutritious products by CHF 20-25 billion by 2030.”

Price Action: NSRGY shares closed lower by 0.82% at $113.06 on Wednesday.

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