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Nestlé, 2022 marked by growth (including green)

Closed fiscal year with revenues at +8.3% over 2021: published Sustainability Report

Nestlé has released its 2022 Annual Report and Shared Value Creation and Sustainability Report. The 2022 budget closes with sales at more than 94.6 billion euros, up 8.3 percent from 2021. Operating income is at 16.14 billion euros, ebitda is at 17.1%. Cash flow is at 11.93 billion euros, free cash flow at over 6.6 billion . The proposed dividend is €2.96 per share, 5.4% higher than last year. 

According to the data, 25.2 percent of revenues come from beverages, 18.1 percent from petcare (where the Purina Pro Plan, Purina ONE and Fancy Feas brands stand out), 15.7 percent from health sciences, and 12.5 percent from prepared meals where the continuous demand that has Maggi as the protagonist stands out: 11.3 of revenues, on the other hand, is the prerogative of milk and ice cream, while 8 percent comes from confectionery and sweets, a segment that underlines the strong growth of KitKat. Geographically, the lion's share is from North America with 33 percent of destinations, followed by Europe (22.3 percent), Africa (21 percent) and Latin America (12.3 percent).

"The results were resilient in a year marked by numerous challenges -an official note from the Swiss company reported-. Staying the course required a constant rebalancing between investment, cost-effectiveness and meeting commitments to shareholders and other stakeholders. The company has continued to deliver innovations at a rapid pace, advance its digital capabilities, and maintain a rigorous focus on strategic portfolio management".

"For the first time -Nestlé adds- the reports provide an overview of the nutritional value of Nestlé's global portfolio. They also provide an update on the company's progress on its Net Zero roadmap and as part of its focus on Good for you to make tasty, balanced diets accessible to people around the world". 

The company led by ceo U. Mark Schneider and president Paul Bulcke is setting a new standard for corporate transparency: it is the first to report the nutritional value of its entire global portfolio and has compared its products to the Health star rating (HSR) system, a nutrient profiling system used by the Access to nutrition index. The results show that Nestlé products with an HSR rating of 3.5 stars or higher, along with specialized nutritional products such as infant or medical nutrition, account for nearly 60 percent of the company's sales. With this in mind, Nestlé's goal is to put "balanced diets within the reach of billions of people": translated into numbers, by 2022 the company has come to produce 129.2 billion affordable servings with micronutrient fortification, namely the "big four" micronutrients: iron, vitamin A, iodine and zinc.

As part of its "Good for the Planet" activity then, Nestlé has further reduced its greenhouse gas emissions to below the 2018 baseline-an achievement while experiencing substantial growth in its business. "Nestlé is aggressively addressing emissions within its operations -the note continues-. For example, it increased its use of renewable electricity last year and is on track to reach 100 percent renewable electricity by 2025".

The 2022 numbers report 6.4 million tons of greenhouse gas (CO2) emissions compared to the normal scenario, with an additional 4.3 million tons and a number of removals initiated, for a total of 10.7 million tons of CO2. For packaging, the goal is to reduce virgin plastics Reduce virgin plastics by one-third by 2025 from an already occurred reduction of 10.5 percent in 2022. 

In line with the recommendations of the Task force on climate-related financial disclosures, the company also released its second voluntary report on climate risks and impacts in which it provides examples of how it consistently creates value through continuous innovation, operational efficiency, and disciplined allocation of resources and capital.

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EFA News - European Food Agency
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