Nestle 2018 Net Profit Rose on One-Offs

   By Anthony Shevlin 
 

Nestle SA (NESN.EB) said Thursday that 2018 net profit rose, boosted by several large one-off items including income from disposals.

The Swiss food-and-beverage company said net profit was 10.1 billion Swiss francs ($10.03 billion), compared with CHF7.20 billion the previous year.

An analyst consensus provided by Nestle saw net profit at CHF11.27 billion.

Sales rose 2.1% to CHF91.44 billion and organic sales growth was 3%, fully in line with guidance, the company said. Analysts had expected sales of CHF91.40 billion and organic-sales growth of 3%.

Nestle's 2.4% organic sales growth in 2017 was its slowest since the mid-1990s.

The company raised its dividend to CHF2.45 per share compared with CHF2.35 the year previous, and said it expects to finish its CHF20 billion share buyback program by the end of 2019.

Looking ahead, Nestle sees continued improvement in 2019 in its organic-sales growth and underlying trading operating profit margin.

Nestle Chief Executive Mark Schneider said: "We are on our way to meeting out 2020 targets."

The company said it will explore strategic options for its Herta charcuterie business, which it expects to complete by the end of 2019. The company added that its review of its skin-health business should be completed by mid-2019.

Write to Anthony Shevlin at [e-mail]; @anthony_shevlin

(END) Dow Jones Newswires

February 14, 2019 01:47 ET (06:47 GMT)

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