Nestle Says 2021 Profit Rose, Sets 2022 Guidance

   By Giulia Petroni 
 

Nestle SA said Thursday that 2021 profit rose, with growth driven by momentum in retail sales, a steady recovery of out-of-home channels, increased pricing and market-share gains.

The Swiss food-and-beverage company said net profit was 16.9 billion Swiss francs ($18.29 billion) compared with CHF12.23 billion the previous year.

Sales rose to CHF87.09 billion from CHF84.34 billion. Organic growth reached 7.5%, supported by strong momentum in the coffee category, while real internal growth was 5.5%.

Pricing increased to 2%, reaching 3.1% in the fourth quarter as the company aimed to offset significant cost inflation, it said.

Regarding the current year, Nestle said it expects organic sales growth of around 5% and an underlying trading operating profit margin of between 17% and 17.5%. Underlying earnings per share in constant currency, as well as capital efficiency, are expected to increase.

In the mid term, the company expects sustained mid single-digit organic sales growth and continued moderate underlying trading operating profit margin improvements. Capital allocation and efficiency are also expected to improve.

Nestle said it will propose a dividend of CHF2.80 a share at the annual general meeting on April 7. This represents an increase of 5 Swiss franc cents.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

February 17, 2022 02:01 ET (07:01 GMT)

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