In Q4, the industry showed modest revenue increases while sales volumes, especially organic growth, have slowed. Price adjustments were applied across the board to counter rising commodity and input costs. Consumers are increasingly favouring lower-priced or private-label alternatives, which has resulted in weaker volume performance in several segments. Data from the IFO Institute confirms that although consumer spending on essentials remains steady, the extent of price hikes and supply-side pressures have limited growth. These trends have forced companies to refine their pricing strategies, optimise product portfolios, and reallocate promotional spend to higher-margin segments.
Unilever
Unilever reported a turnover of approximately €60.8 billion for 2024, with year-on-year growth of 1.9 per cent. Underlying operating profits increased by 12.6 per cent to about €11.2 billion. The company has restructured its product mix by divesting its traditional ice cream business in order to concentrate on higher-margin beauty and wellness segments. Unilever has implemented modest price increases in premium categories while reducing promotional spend on lower-margin food lines. Investments in supply chain digitalisation and cost control have maintained stable operating costs, and the recent share buyback programme along with a dividend increase reflect a deliberate capital allocation strategy.
Nestlé
Nestlé reported net revenues of approximately US$104 billion, growing around 4.7 per cent. However, the full-year figures reveal that Nestlé posted its weakest annual organic sales growth in more than two decades. Organic sales grew only 2.2 per cent in 2024, a sharp drop from the 7.2 per cent recorded the previous year, and reported sales fell 1.8 per cent on a reported basis. Internal growth was modest at 0.8 per cent, with pricing contributing just 1.5 per cent to sales growth compared with 7.5 per cent previously. This slowdown reflects a consumer pullback as shoppers opt for cheaper brands. Nestlé is now increasing its advertising and marketing investments while addressing underperforming businesses—which account for 21 per cent of its sales—with the aim of improving growth in 2025. The coffee business remains a key growth driver, and the pet care unit showed low single-digit gains, though rising costs for cocoa and coffee, alongside tariff uncertainties, continue to pressure profitability.
PepsiCo
PepsiCo reported fourth-quarter net revenue of approximately US$27.78 billion, marking a slight decline for the third consecutive quarter due to lower volumes in North American segments like Frito-Lay and Quaker Foods. Net income increased from US$1.30 billion to US$1.52 billion, with earnings per share at US$1.11 and adjusted earnings of US$1.96 per share. The company has applied targeted price adjustments in categories such as zero sugar and functional hydration beverages. In international markets, organic revenue grew about 6 per cent. PepsiCo has refreshed its Simply brand and expanded its multicultural snack portfolio with ethnic-inspired flavours, supported by digital marketing and in-store activations. The forecast for 2025 anticipates low-single-digit revenue growth with a mid-single-digit increase in core earnings per share.
Procter & Gamble
Procter & Gamble reported net revenue of approximately US$82.01 billion, with a 2.27 per cent year-on-year increase. The company continues to focus on its integrated strategy of product innovation, supply chain optimisation, and targeted promotions. Its Supply Chain 3.0 initiative, bolstered by automation and digital tools, is expected to deliver about US$1.5 billion in cost savings in North America. P&G has executed measured price increases on premium brands while supporting demand through coordinated digital and in-store promotions. The ongoing refinement of its product portfolio—focusing on brands that generate high loyalty and stable margins—enables P&G to adjust pricing and promotions responsively.
Coca-Cola
Coca-Cola posted fourth-quarter net revenue of approximately US$11.54 billion, surpassing previous performance and forecasts. Adjusted earnings per share reached US$0.55, supported by a 2 per cent increase in global unit case volumes. The company raised prices by around 9 per cent across markets, boosting revenue even as volumes declined in some areas. Promotional campaigns, including targeted digital initiatives and strategic fast-food partnerships, have reinforced sales in premium categories such as zero-sugar beverages. Despite adverse currency impacts and rising input costs, Coca-Cola has maintained operational efficiency in its supply chain and continues to deliver moderate organic revenue growth.
Kraft Heinz
Kraft Heinz reported fourth-quarter sales of approximately US$6.58 billion, a 4 per cent decline compared to the previous year. Adjusted earnings per share increased by 8 per cent to 84 cents. The company is addressing underperformance by implementing targeted price cuts in core categories to stimulate demand among price-sensitive shoppers. However, these measures have contributed to lower revenue in key segments. Structural issues, including an ageing product portfolio and underperforming brands, remain a concern. Although cost-cutting initiatives have improved short-term profitability, the company is under pressure to invest in product innovation and digital marketing to reclaim lost volumes and improve long-term growth prospects. Kraft Heinz now forecasts fiscal 2025 adjusted profit between $2.63 and $2.74 per share and expects annual organic sales to be flat to down 2.5 per cent.
Mondelez International
Mondelez International recorded a revenue increase of approximately 1.2 per cent for fiscal 2024, with organic net revenues growing around 4.3 per cent, partially offset by a 1 per cent decline in volume. The company has implemented selective price increases in key categories such as chocolate and biscuits, capturing additional margins, while targeted promotions in emerging markets are designed to support volume. Digital marketing initiatives have been used to tailor promotional efforts to local consumer preferences, and investments in packaging redesign have enhanced product appeal. Mondelez continues to focus on a strategy that balances price adjustments with promotions, relying on real-time consumer data to fine-tune its approach.
Additional Insights: Heineken, Coca-Cola, and IFO Research
Our recent blog post on Heineken and Coca-Cola detailed that Heineken’s performance in Europe and Asia benefited from aggressive regional price adjustments and a strong focus on supply chain digitalisation. In contrast, Coca-Cola maintained robust unit case volumes while leveraging global price increases. This comparison highlights how different approaches in pricing and operational efficiency can yield varied results across markets.
Research from the IFO Institute confirms that consumer spending in the FMCG sector has remained resilient, even as real internal sales growth and volume performance have slowed. The study shows that while price increases have helped offset rising input costs, they have not fully translated into volume growth, as consumers continue to seek lower-priced alternatives. This data supports the patterns observed across the companies we have reviewed.
Additionally, special attention must be given to Nestlé’s recent performance. Nestlé’s reported organic sales growth of 2.2 per cent in 2024—the weakest in over two decades—underscores the significant impact of a consumer pullback on premium branded products. This slowdown, especially when compared with previous growth rates, reinforces the need for increased marketing investments and portfolio adjustments to stimulate internal growth.
Hedge funds have also highlighted Mondelez International as one of the best FMCG stocks to buy, noting its digital transformation initiatives, including a strategic partnership with AWS to enhance its e-commerce capabilities. These developments, coupled with its balanced approach to pricing and promotions, place Mondelez in a strong position relative to its peers.
Thank you for reading this post of Accuris FMCG Weekly. We trust this detailed analysis has provided valuable insights into both the overall industry trends and the specific performance of these key FMCG companies. Stay tuned for our next episode as we continue our in-depth review of the sector. Until next time, thank you for listening.
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