Nestlé reports first FY organic sales growth in six years | Progresiv
Nestlé has reported its first rise in full-year sales on an organic basis in six years, which the world’s largest food maker said was a sign that its revamped strategy is working. 
For the year, overall sales rose by 2.1% to 91.4bn Swiss francs, with sales up 3% on an organic basis. Meanwhile, trading operating profit was up 3.9% to 13.8bn francs, although this grew by 5.1% on an underlying basis. Finally, net profit surged up 41.6% to 10.1bn francs, helped by one-off gains.
The group said sales growth was supported by momentum in its two largest markets – the US and China. In the Americas, sales grew by 2% on an organic basis, with North America returning to positive growth during the year. In Europe, Middle East and North Africa, sales grew by 1.9% on an organic basis, as demand for infant nutrition and Purina products offset price deflation in Western Europe. In Asia, Oceania and sub-Saharan Africa, sales were up 4.3% on an organic basis, helped by improvements in China and double-digit growth in Vietnam and Indonesia.
The Nestlé Waters unit reported a 2.1% rise in organic sales, helped by growth in Europe and price hikes in the US. And its Other Businesses – which includes Nespresso, Health Science, and Skin Health – saw their sales grow by 5.7% on an organic basis, with growth across all regions.
CEO Mark Schneider noted: “We are pleased with our progress in 2018. All financial performance metrics improved significantly and we saw revived growth in our two largest markets, the United States and China, as well as in our infant nutrition business … We are on our way to meeting our 2020 targets and positioning Nestlé for sustained and sustainable growth in the years beyond.”
For 2019, it expects organic sales to continue growing. The group also said it will “explore strategic options” for its Herta charcuterie business, as it looks to position the portfolio “towards attractive high-growth categories”.
Separately, Nestlé has proposed the names of Dick Boer (former CEO of Ahold Delhaize) and Dinesh Paliwal (CEO of Harman International) as independent members of its board of directors. The elections for those positions will take place at the Annual General Meeting on 11 April 2019. Meanwhile, two current directors – Jean-Pierre Roth, and Ruth Oniang’o – will retire from the Board, as they have reached the age limit set out. (www.kamcity.com)
