Nestlé in Ukraine this year has reduced the rate of decline in production volumes to 5% from 15% last year, and intends to return to growth in 2024, CEO of Nestlé in Ukraine and South-Eastern Europe Alessandro Zanelli told Interfax-Ukraine on the sidelines of the European Business Association (EBA) conference.

According to him, the decline is explained by the loss of 8.8 million consumers who left the country or remained in the occupied territories, as well as the fact that one of the company's factories was not working for most of 2022.

In the same year, Nestlé began construction of a new factory in Volyn worth EUR 42 million with the support of the European Bank for Reconstruction and Development (EBRD) next to the existing one. The new factory will produce instant noodles and other food products, which also creates the basis for increasing production.

Speaking at the conference, Zanelli noted that in monetary terms this year, Nestlé in Ukraine had already achieved sustainable double-digit growth, with average growth in the FMCG sector of about 17%.

He added that exports had resumed and were increasing. In particular, at the Lviv factory, which also produces products of the Svitoch brand, its growth reached 20% compared to last year, mainly due to the supply of coffee to Bulgaria, but also confectionery products. At the Volyn factory, which produces culinary products, sauces and ketchups, exports increased by about 5%.

At the conference, Zanelli also emphasized that the company, in the face of full-scale military aggression, focused on improving the safety and support of its 5,500 employees in Ukraine, in particular supporting mental health.

The CEO indicated that the company recently conducted a study on the psychological state of its employees. According to him, 46% of respondents reported feeling depressed or at risk of depression and the need for psychological help, so the company would continue to work in this direction.

He also said that this year the company had donated about CHF 8 million to charity, in addition to CHF 13 million last year.

Nestlé is one of the world's largest food and beverage companies, with a presence in 187 countries. It offers a wide range of products and services for families and pets. It has more than 2,000 brands.