News

Nestlé reports minimal growth, flat sales

16 Feb 2018

Nestlé has reported organic growth of 2.4%, with 1.6% of real internal growth (RIG) and pricing of 0.8%. Total reported sales increased by 0.4% to CHF89.8 billion (2016: CHF89.5 billion).

Nestlé has reported organic growth of 2.4%, with 1.6% of real internal growth (RIG) and pricing of 0.8%. Total reported sales increased by 0.4% to CHF89.8 billion (2016: CHF89.5 billion). Trading operating profit margin decreased by 60 basis points on a reported basis to 14.7%, in line with the company’s October 2017 expectations. Underlying earnings per share increased by 4.7% in constant currency and by 4.6% to CHF3.55 on a reported basis.

In its 2018 outlook, Nestlé forecast organic sales growth between 2% and 4%; underlying trading operating margin improvement in line with its 2020 target.

Mark Schneider, Nestlé CEO, said: "Our 2017 organic sales growth was within the guided range but below our expectations, in particular due to weak sales development towards the end of the year. Sales growth in Europe and Asia was encouraging while North America and Brazil continued to see a challenging environment.”

“Our cost reduction initiatives delivered margin improvement ahead of 2017 expectations, in spite of considerable commodity price increases.”

“During the past months, we have completed initial portfolio adjustments with very favorable results. We will continue this active portfolio management approach in a disciplined manner and fully in line with our strategy. Regarding our core portfolio, accelerating our growth through product innovation and renovation is high on the agenda.”

“Organic sales growth is expected to improve in 2018 and we are firmly on track for our 2020 margin improvement target."