Nestlē Global reports half-year results
By CANADIAN VENDING
Nestlé reported its financial results, and the impact COVID-19 had on its sales.
The company reported that free cash flow decreased by 19.1 per cent to CHF 3.3 billion, largely due to a delayed dividend payment from an associate company and lower reported sales during the pandemic.
Despite that, Nestlē stated that organic growth reached 2.8 per cent, with real internal growth (RIG) of 2.6 per cent and pricing of 0.2 per cent. Though slow, growth was still supported by sustained momentum in the Americas, Purina PetCare and Nestlé Health Science.
Nestlé added the following notes to its shareholders:
- Divestitures and foreign exchange reduced sales by 12.3 per cent. Total reported sales decreased by 9.5 per cent to CHF 41.2 billion (6M-2019: CHF 45.5 billion).
- The underlying trading operating profit (UTOP) margin reached 17.4 per cent, up 30 basis points. The trading operating profit (TOP) margin increased by 140 basis points to 16.9 per cent.
- Earnings per share increased by 22.2 per cent to CHF 2.06 on a reported basis. Underlying earnings per share increased by 0.5 per cent in constant currency and decreased by 5.9 per cent on a reported basis to CHF 2.01.