Nestlé has done and earned more over the past year. Sales increased by 3.3 percent to CHF 87.1 billion. Thanks to the sale of a stake, net profit shot up by 38.2 percent to CHF 16.9 billion. However, as expected, the world’s largest food company suffered from cost inflation last year and achieved a lower operating profit margin. In the current year, too, the margin will be regarding the same.
The operating profit margin was 17.4 percent following 17.7 percent in the previous year, as Nestlé announced on Thursday. This shows that costs had a slightly stronger impact on earnings than expected. Nestlé had previously expected around 17.5 percent. However, the company met the analysts’ expectations.
Nestlé sells 5.5 percent more
The margin will also remain under pressure in the current year – Nestlé expects a number between 17 and 17.5 percent. Organic growth is expected to be around 5 percent. Mid-term, the company expects “continued organic sales growth in the mid-single digits” and continued moderate improvement in underlying operating profit margin.
In 2021, Nestlé grew by 7.5 percent under its own steam. In terms of volume, the company sold 5.5 percent more of its products. In addition, there were price increases of 2.0 percent. The growth was supported by the ongoing momentum in retail, the steady recovery of the out-of-home channels, price adjustments and market share gains.
Two new board members
It is also known: Nestlé is proposing to its shareholders that Luca Maestri and Chris Leong be elected to the Board of Directors. Ann M. Veneman and Kasper Rorsted are no longer standing for re-election. Luca Maestri has been CFO at technology group Apple since 2014. He has contributed to the development of innovation and the creation of shareholder value at Apple, according to a statement from Nestlé on Thursday.
Chris Leong was appointed Chief Marketing Officer and a member of Schneider Electric’s Executive Board in 2015. She brings Asian experience to the Nestlé Board thanks to her global and regional roles. Ann M. Veneman, on the other hand, will leave the board following 11 years. Kasper Rorsted is also no longer standing for re-election. The Nestlé Annual General Meeting will take place on April 7, 2022. (SDA)