Strong Broad-based Performance by Nestle
Nestlé has reported a 10.2% increase in sales to SFr92.2 billion (Eur74.8 billion) for 2012 with organic growth of 5.9%, building on the strong growth of recent years. The organic sales growth was composed of 3.1% real internal growth and 2.8% pricing. After years of adverse impact, foreign exchange added 1.7% to sales, and acquisitions, net of divestitures, a further 2.6%.
The group’s trading operating profit increased by 11.8% to SFr14.0 billion. The trading operating profit margin was 15.2%, up 20 basis points, and up 10 basis points in constant currencies.
Nestle increased the marketing support behind its brands during 2012 bringing total marketing costs up by 30 basis points. Consumer facing spend rose about 8% in constant currencies. Net profit rose by SFr1.1 billion to SFr10.6 billion, and earnings per share were up 12.2%.
The Nestlé Group’s growth was broad-based across all categories and geographies, with 5.9% organic growth in theAmericas, 2.4% in Europe and 10.3% in Asia, Oceania and Africa.
In spite of the challenging trading environment in the developed world Nestle’s innovation in products, systems and routes to market delivered organic growth of 2.5%. In emerging markets the global food and beverage group grew 11%, achieving sales of SFr39.3 billion.
During 2012, Nestle acquired Wyeth Nutrition and inaugurated the Nestlé Institute of Health Sciences, added two new R&D units inC hina, a new R&D centre in India and opened a global centre for clinical trials in Switzerland.
Paul Bulcke (pictured), chief executive of Nestlé, comments: “In 2012 we delivered on our commitment: a good, broad-based performance building upon the profitable growth achieved consistently over previous years. All our businesses, both in developed and in emerging markets contributed. Our nutrition, health and wellness agenda continued to bring enhanced benefits for consumers, greater brand differentiation in the market place and increased value for shareholders.”
He adds: “Despite the many challenges 2013 will no doubt bring, we expect to deliver the Nestlé Model of organic growth between 5% and 6% as well as an improved margin and underlying earnings per share in constant currencies.”
