consumer goods
Nestlé with unexpectedly strong growth –
The bottom line is that the Nesté food company made a profit of CHF 16.9 billion. Photo: Jean-Christophe Bott/KEYSTONE/dpa
© dpa-infocom GmbH
Good business in retail and hospitality has given Nestlé more sales and profits. Even a division that had been weak for a long time grew last year.
Nestlé grew slightly faster than expected. However, rising costs are also affecting profitability at the world’s largest food company.
Last year, Nestlé increased sales from its own resources by 7.5 percent compared to the previous year, as the group announced on Thursday. The group thus exceeded its own targets and the expectations of experts.
Overall, Nestlé turned over almost 87.1 billion francs (83 billion euros) after 84.3 billion francs a year earlier. The manufacturer did good business with retailers. Nestlé also benefited from the fact that more was sold again through the catering trade.
Strong profit increase
The bottom line for the past year was a profit of around 16.9 billion francs, a year ago it was around 12.2 billion. The reduction in the stake in L’Oréal also contributed to the increase in profits. In December 2021, Nestlé sold shares in the French cosmetics group worth around 9.3 billion francs.
The group grew most clearly with coffee products, and price increases also contributed to the plus. In addition, the realignment towards premium water brands seems to be paying off for the group: the water business, which has tended to weaken in the past, grew by 6.8 percent. Nestlé has been restructuring its global water business for some time and is now increasingly focusing on international premium brands and mineral water.
For 2022, the management around CEO Mark Schneider is planning an organic increase in sales of around 5 percent. The new year got off to a good start, and Schneider described the forecast as cautious in a conference call with journalists. These are “turbulent times” in terms of cost inflation. As in the previous year, Nestlé wants to cushion the increasing costs with price increases, “across all countries and categories,” announced the company’s director.