Nestlé hampered by problems with new highly automated facility
Supply constraints hampered the sales and profits of Nestlé’s vitamin, mineral and supplement business in 2023, executives said last week.
Real internal growth at Nestlé Health Science fell by 3.2% in the second half of 2023 because of the supply shortfalls, CFO and EVP François-Xavier Roger said on the company’s earnings call. The unit’s underlying trading operating profit margin fell by 1.6 percentage points.
The supply issues trace back to IT hiccups in the implementation of what Roger described as “highly automated systems” at its U.S. packaging sites last year. “We are mobilizing the group’s full resources and the supply constraints are expected to be fully resolved by the end of the first half of 2024,” the finance chief added.
