By Giulia Petroni 
 

Nestle SA said Thursday that 2020 net profit fell while sales rose organically and that it expects continued improvement in organic growth and profitability.

The Swiss food-and-beverage company said net profit for the year was 12.23 billion Swiss francs ($13.65 billion) compared with CHF12.61 billion the previous year.

Sales decreased on year to CHF84.34 billion. Organic growth reached 3.6%, supported by strong momentum in the Americas as well as Purina PetCare and Nestle Health Science.

Analysts had forecast net profit of CHF11.97 billion and sales of CHF84.78 billion, according to a company-compiled consensus.

Looking at the current year, Nestle said it expects a continued increase in organic sales growth toward a mid single-digit rate and continued, moderate improvement in underlying trading operating profit margin. It sees an increase in underlying earnings per share at constant currency and capital efficiency, the company said.

In the mid term, it expects sustained mid single-digit sales growth.

Nestle said its board of directors will propose a dividend of CHF2.75 a share, an increase of 5 centimes, at the annual general meeting scheduled for April 15.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

February 18, 2021 02:01 ET (07:01 GMT)

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