Dubai, United Arab Emirates:                                                

  • Organic growth reached 7.5%, with real internal growth (RIG) of 5.5% and pricing of 2.0%. Growth was supported by continued momentum in retail sales, steady recovery of out-of-home channels, increased pricing and market share gains.
  • Total reported sales increased by 3.3% to CHF 87.1 billion (2020: CHF 84.3 billion). Foreign exchange reduced sales by 1.3%. Net divestitures had a negative impact of 2.9%.
  • The underlying trading operating profit (UTOP) margin was 17.4%, decreasing by 30 basis points. The trading operating profit (TOP) margin decreased by 290 basis points to 14.0% on a reported basis, largely reflecting impairments related to the Wyeth business.
  • Underlying earnings per share increased by 5.8% in constant currency and by 5.1% on a reported basis to CHF 4.42. Earnings per share increased by 41.1% to CHF 6.06 on a reported basis, mainly reflecting the gain on the disposal of L’Oréal shares.
  • Free cash flow decreased by 14.9% to CHF 8.7 billion, reflecting temporarily higher capital expenditure and inventory levels.
  • Board proposes a dividend of CHF 2.80 per share, an increase of 5 centimes, marking 27 consecutive years of dividend growth. In total, CHF 13.9 billion were returned to shareholders in 2021 through a combination of dividend and share buybacks.
  • Continued progress in portfolio management. Portfolio rotation since 2017 now amounts to around 20% of total 2017 sales.
  • 2022 outlook: we expect organic sales growth around 5% and underlying trading operating profit margin between 17.0% and 17.5%. Underlying earnings per share in constant currency and capital efficiency are expected to increase.
  • Mid-term outlook: sustained mid single-digit organic sales growth. Continued moderate underlying trading operating profit margin improvements. Continued prudent capital allocation and capital efficiency improvements.

Mark Schneider, Nestlé CEO, commented:"In 2021, we remained focused on executing our long-term strategy and stepping up growth investments, while at the same time navigating global supply chain challenges. Our organic growth was strong, with broad-based market share gains, following disciplined execution, rapid innovation and increased digitalization. We limited the impact of exceptional cost inflation through diligent cost management and responsible pricing. Our robust underlying earnings per share growth shows the resilience of our value creation model. The entire Nestlé team demonstrated exemplary perseverance and agility in a challenging environment.

The evolution of our portfolio continued, focusing on categories with attractive growth opportunities and differentiated offerings. Recent examples include the acquisition of the core brands of The Bountiful Company and the divestiture of the mainstream water brands in North America.

Our sustainability agenda further progressed as we enhance the well-being of our consumers, help regenerate the environment and strengthen the farming communities in our supply chains.

We continued to create value for our shareholders through disciplined capital allocation, steadily increasing dividends and significant share buybacks. Going forward, we are confident in the strength of our value creation model."

Read the full report here.

-Ends- 

For more information, please contact:
Layal Dalal, Nestlé Media Relations Manager, Middle East and North Africa
Email: layal.dalal@AE.nestle.com 

About Nestlé in the Middle East and North Africa (MENA)

Nestlé’s heritage in the Middle East and North Africa goes back over 100 years with the sale of the first Infant Cereals in Egypt. Today, Nestlé operates 25 Food & Beverage factories across the 19 countries of the MENA region; and provides direct employment to more than 15,000 people. Nestlé MENA also provides indirect employment to several thousand more across the region.

The Nestlé portfolio in the region currently exceeds 60 innovative product brands in a wide range of categories: Dairy, Infant Nutrition, Coffee and Creamers, Confectionery, Bottled Water, Breakfast Cereals, Culinary products, Health Science, and Pet Care, among others. Nestlé Nido, Nestlé Cerelac, Nestlé NAN, S-26, Progress, Nescafé, Nespresso, Bonjorno Café, Coffee-mate, KitKat, Maggi, Nestlé Fitness, Nestlé Pure Life, Optifast, and Purina Friskies are just some of the brands available in the Middle East and North Africa. 

To know more, you can visit the following pages: 
Website: www.nestle-mena.com
Facebook:  https://www.facebook.com/NestleMiddleeastNorthafrica
Twitter: http://www.twitter.com/NestleMe
Instagram: http://www.instagram.com/nestlemena/
LinkedIn: https://www.linkedin.com/company/nestle-s-a-
Flickr:  https://www.flickr.com/people/nestlemena/  

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2022

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.