Nestlé reports 3.2% organic full-year growth in 2016

Canadian Vending
February 24, 2017
By Canadian Vending
Vevey, Switzerland – Nestle reports 3.2 per cent organic growth and a trading operating profit margin up 30 basis points in constant currency.

Highlights of the report:
  • 3.2% organic growth, continued strong real internal growth of 2.4%
  • Sales of CHF 89.5 billion, up 0.8% reported, foreign exchange impact of -1.6%
  • Trading operating profit margin up 30 basis points in constant currency, reported trading operating profit margin up 20 basis points to 15.3%
  • Underlying earnings per share of CHF 3.40, up 3.4% in constant currency
  • Significant reduction of average working capital from 4.7% to 2.8% of sales
  • Proposed dividend increase to CHF 2.30 per share
For 2017, the company expects organic growth between 2% and 4%; stable trading operating profit margin in constant currency as a result of considerable increase in restructuring costs to drive future profitability; underlying earnings per share in constant currency and capital efficiency are expected to increase.

“Our 2016 organic growth was at the high end of the industry but at the lower end of our expectations,” Mark Schneider, Nestlé CEO. “We saw a solid trading operating profit margin improvement and our cash flow grew significantly. Based on these results, our Board of Directors is pleased to propose the 22nd consecutive dividend increase, underlining our commitment to continuity.”

The full report is available here.

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