Abbott Nutrition recently released its
third-quarter financial report, in which it reported sales of US$10.93 billion
during the third quarter, higher than market expectations of US$9.56 billion
and a year-on-year increase of 23.4%. Additionally, net profit in the third
quarter was US$2.1 billion, a year-on-year increase of 70.4%.
At the same time, Nestle also released its
third-quarter financial report yesterday, which showed that Nestle's
third-quarter sales were SFr 63.3 billion (USD 69 million), an increase of 2.2%
year-on-year, but its infant nutrition business showed negative growth. On the
other hand, infant nutrition growth outside of China is positive.
Abbott Nutrition business sales increase by 9.6% YoY
According to Abbott's third quarter financial
report, Abbott Nutrition's business sales were US$2.1 billion, an increase of
9.6% year-on-year. Specially, Abbott's infant oral electrolyte and oral
rehydration salt brand Pedialyte showed strong performance in the third quarter
of this year. Benefiting from the continued growth of the infant nutrition
business, Abbott's US-related business grew by 20.2%, and global infant
nutrition sales increased by 9.4%. In addition, Abbott's nutritional product
brand Glucerna has achieved good results, driving Abbott's global adult
nutrition market to achieve a sales growth of 9.8%.
The 2021 International Food Safety and Health
Conference was held at the beginning of this month. Carreno, the Vice President
of Abbott Nutrition Business North Asia, attended and participated in the
discussion and announced that it will gather three academics and several
experts in the fields of nutrition, food processing, and safety in order to
form an academic committee and set up the Abbott Breast Milk Research
Institute, which will bring breakthrough advanced scientific formulas to better
meet the nutritional needs of babies' growth.
Nestlebaby nutrition sales decline in Q3 of 2021
According to Nestle's third-quarter 2021
financial report, Nestle achieved low-single-digit growth in the Chinese market
during the first nine months of 2021. The strong sales growth in most
categories was offset by the decline in sales revenue from the infant nutrition
business. In addition, Nestle commented that in the difficult economic
environment of the regional lockdown, Asia, Africa, and Asia have been unable
to exceed a mid-single-digit organic growth. The slight decline in growth in
the third quarter reflects the decline in sales of China's infant nutrition.
Previously, Nestle's Chief Financial Officer
Franois-Xavier Roger said that China's infant nutrition products have
encountered different challenges, including the impact of declining traffic in
maternal and infant stores on sales. Earlier this year, Nestle CEO Mark
Schneider also revealed that Nestle is responding to the unstable birth rate in
China and increased competition from local brands by increasing its penetration
rate in the sinking market and launching new research and development products.
Song Liang, head of the economic expert group
of the China National Farming Dairy Alliance and senior dairy analyst, once
predicted that China's dairy industry will encounter fierce competition with
other enterprises for the following three reasons.
First, the decline in the birth rate around
the world has caused the total market capacity to shrink rapidly. Second,
current policies have caused market concentration to increase rapidly, and the
formation of zero-sum games among leading companies has been accelerated.
Third, traditional production companies and distributors still rely on milk
powder as their main source of income and profit. This is also causing today's
price wars between major companies.
Song Liang also believes that the milk powder
market will start to recover after 2023. With the end of the pandemic and the
successive introduction of various supportive policies, the population's
fertility rate will rise significantly, international political and economic
relations will improve, China's milk powder formula registration system will no
longer be in effect, which will lead to an upward trend in China's milk powder
market.
For more information, please check our Dairy
Products China News.
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