Nestlé: a 2021 of perseverance and growth
The Group publishes the financial data relating to the entire fiscal year
Nestlé, a multinational company active in the food sector, based in Vevey, Switzerland, has released its results for the entire fiscal year 2021. The company's organic growth reached 7.5%, with real internal growth (Rig) of 5.5% and a pricing of 2.0%. The development was supported by the continued momentum of retail sales, the steady recovery of out-of-home channels, rising prices and gaining market share.
"In 2021, the entire team demonstrated exemplary perseverance and agility in a very difficult moment", commented Mark Schneider, CEO of Nestlé. "The evolution of our portfolio has continued, focusing on categories with attractive growth opportunities and differentiated offerings. Recent examples include the acquisition of The Bountiful Company brands and the divestment of water bands in North America (see article EFA News of 12-8-21). We have continued to invest in sustainability by improving the well-being of our consumers, helping the environment and strengthening agricultural communities that are key players in our supply chains. We have continued to create value for our shareholders through a disciplined capital allocation, steadily rising dividends and significant share buybacks".
The Group closed 2021 with sales growth of 3.3% annually to 87.1 billion francs (83.3 billion euros). Exchange rates reduced turnover by 1.3% and net divestments had a negative impact of 2.9%. Net profit: 16.9 billion (+38,2%). Earnings per share increased by 41.1% to Chf 6.06 on a declared basis, mainly reflecting the capital gain on the disposal of L'Oréal shares (see EFA News article of 9-12-21).
The Group's board of directors has proposed a dividend of Chf 2.80 per share. In total, Chf 13.9 billion was returned to shareholders in 2021, through a combination of dividends and share buybacks. For 2022, Nestlé expects organic sales growth around 5% and an underlying commercial operating margin between 17.0% and 17.5%. The underlying constant currency earnings per share and capital efficiency are expected to increase. In the medium term, the Group expects: organic single-digit revenue growth, continued moderate improvements in the underlying commercial operating margin and improvements in capital efficiency.
EFA News - European Food Agency