Nestle Lifts 2022 Organic Sales Outlook; Sets Out 2025 Targets
November 29 2022 - 2:19AM
Dow Jones News
By Giulia Petroni
Nestle SA has lifted its full-year organic sales-growth guidance
and outlined targets for 2025 ahead of its investor seminar on
Tuesday.
The Swiss packaged-foods giant said it now expects sales to grow
organically between 8% and 8.5% from previous expectations of
around 8%. The underlying trading operating profit margin is still
seen at around 17%.
By 2025, it expects to return to an underlying trading operating
profit margin in the range of 17.5% to 18.5%, following the margin
impact of cost inflation in 2021 and 2022.
Annual underlying earnings-per-share growth is seen between 6%
and 10% in constant currency over the 2022-25 period, Nestle said.
The company aims for free cash flow toward 12% of sales, and return
on invested capital of 15% by 2025.
In terms of portfolio management, it said it will explore
strategic options for peanut allergy treatment Palforzia, following
slower than expected adoption by patients and heathcare
professionals. The review should be completed in the first half of
next year.
Nestle said the health-science business will focus more on
consumer care and medical nutrition.
The company confirmed its program to repurchase 20 billion Swiss
francs ($21.14 billion) of its shares between 2022 and 2024 and
said it aims to keep increasing its dividend year on year.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
November 29, 2022 02:04 ET (07:04 GMT)
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