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Nestlé reports “strong results”

Nestlé has announced full year sales of CHF 91.6 billion, representing 4.5% organic growth and 2.3% real internal growth, but down 0.6% in real terms, impacted by negative foreign exchange of -5.5%. Trading operating profit margin was CHF 14.0 billion, up 10 basis points to 15.3%, and up 30 basis points in constant currencies. For its […]

Nestlé has announced full year sales of CHF 91.6 billion, representing 4.5% organic growth and 2.3% real internal growth, but down 0.6% in real terms, impacted by negative foreign exchange of -5.5%. Trading operating profit margin was CHF 14.0 billion, up 10 basis points to 15.3%, and up 30 basis points in constant currencies. For its 2015 outlook, the company said it aims to achieve organic growth of around 5%.

Net profit rose CHF 4.4 billion to CHF 14.5 billion, reflecting the profit realised on the disposal of part of the stake in L’Oréal and the revaluation gain on the 50% of Galderma already held when the Group brought its ownership from 50% to 100%.

“These are strong results, building on the good growth of past years and delivered in a soft trading environment,” said Paul Bulcke, Nestlé CEO. “They demonstrate the intrinsic strengths of Nestlé: the commitment of our people, our global footprint, the strength of our portfolio and the quality of our innovation. While delivering in the short term, we remain focused on our business long term, strengthening the foundations of future growth. We expect 2015 to be similar to 2014 and we aim to achieve organic growth of around 5% with improvements in margins, underlying earnings per share in constant currencies and capital efficiency.”