Nestle Says 2021 Profit Rose, Sets 2022 Guidance
February 17 2022 - 2:16AM
Dow Jones News
By Giulia Petroni
Nestle SA said Thursday that 2021 profit rose, with growth
driven by momentum in retail sales, a steady recovery of
out-of-home channels, increased pricing and market-share gains.
The Swiss food-and-beverage company said net profit was 16.9
billion Swiss francs ($18.29 billion) compared with CHF12.23
billion the previous year.
Sales rose to CHF87.09 billion from CHF84.34 billion. Organic
growth reached 7.5%, supported by strong momentum in the coffee
category, while real internal growth was 5.5%.
Pricing increased to 2%, reaching 3.1% in the fourth quarter as
the company aimed to offset significant cost inflation, it
said.
Regarding the current year, Nestle said it expects organic sales
growth of around 5% and an underlying trading operating profit
margin of between 17% and 17.5%. Underlying earnings per share in
constant currency, as well as capital efficiency, are expected to
increase.
In the mid term, the company expects sustained mid single-digit
organic sales growth and continued moderate underlying trading
operating profit margin improvements. Capital allocation and
efficiency are also expected to improve.
Nestle said it will propose a dividend of CHF2.80 a share at the
annual general meeting on April 7. This represents an increase of 5
Swiss franc cents.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
February 17, 2022 02:01 ET (07:01 GMT)
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