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2016-02-18

Nestlé S.A. Full-Year 2015: 4.2% organic growth, trading operating profit margin up 10 basis points in constant currencies

Nestlé S.A. / Nestlé S.A. Full-Year 2015: 4.2% organic growth, trading
operating profit marginup 10 basis points in constant currencies . Processed
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responsible for the content of this announcement.
This press release is also available inFrançais (pdf)andDeutsch (pdf)

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08:30 CETFull-year results conference webcast

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details:www.nestle.com/media/mediaeventscalendar/allevents/2015-full-year-results

Reports published today

2015 Financial Statements (pdf)

Corporate Governance Report (pdf)

Other language versions available inPublications

.......................................

Vevey, 18 February 2016

Full-Year 2015:
4.2% organic growth, trading operating profit margin up 10 basis points in
constant currencies

* 4.2% organic growth and 2.2% real internal growth
* Sales of CHF 88.8 billion, foreign exchange impact of -7.4%
* Trading operating profit margin of 15.1%, up 10 basis points in constant
currencies
* Underlying earnings per share up 6.5% in constant currencies
* Strong operating cash flow at CHF 14.3 billion
* Proposed dividend increase to CHF 2.25 per share
* 2016 outlook: organic growth in line with 2015 with improvements in margins
and underlying earnings per share in constant currencies, and capital
efficiency

Paul Bulcke, Nestlé CEO: "In 2015 we delivered profitable growth at the higher
end of the industry in what is still a challenging environment. This
profitable growth was on the back of consistent performances in previous
years.
Our organic growth of 4.2% was supported by increased momentum in real
internal growth combined with continued margin improvement. Additionally, we
grew or maintained market share in the majority of our categories and
markets.

At the same time we continued to invest for the future with increased support
behind our brands and further development of our new platforms in nutrition
and health as well as E-commerce. We kept up the focus on
portfolio management, turning around our frozen food business in the United
States, disposing of non-core businesses and forging a new partnership to
create a leading player in ice cream.

Our free cash flow generation was again at the top end of the food industry at
11.2% of sales, as a result of our focus on margins with discipline in
capital expenditure and working capital. Consequently we propose to increase
the dividend as we have for the last twenty years.

We anticipate that our trading environment in 2016 will be similar to previous
years with even softer pricing. As such we expect to deliver organic growth
in line with 2015, with improvements in margins and underlying earnings per
share in constant currencies, and capital efficiency."

Group results

Sales

* In 2015 Nestlé's organic growth was 4.2%, composed of 2.2% real internal
growth and 2.0% pricing.
* Total sales of CHF 88.8 billion, with aforeign exchange impact of -7.4%.
Acquisitions, net of divestitures, added 0.1% to sales.

* Organic growth was broad-based across geographies and categories. * 5.8% in
the Americas (AMS) * 3.5% in Europe, Middle East and North Africa (EMENA) *
1.9% in Asia, Oceania and sub-Saharan Africa (AOA)
* Real internal growth was also broad-based. * 2.4% in AMS * 2.8% in EMENA *
1.2% in AOA

* Continued strength indeveloped markets with organic growth of 1.9% and
inemerging markets with 7.0%.
* Increased or maintained market share in the majority of our categories and
markets.

Trading Operating Profit

* Trading operating profit was CHF 13.4 billion, with a margin of 15.1%, down
20 basis points on a reported basis affected by the strong Swiss Franc, up
10 basis points in constant currencies.
* We delivered this margin improvement while: * Increasing substantially our
investment in brand support, digital, research and development, and in our
new nutrition and health platforms. * Absorbing the cost of exceptional
events likeMaggi noodles in India.

Net Profit

* Net profit was CHF 9.1 billion. The reduction of CHF 5.4 billion versus
last year was mostly due to the one-off impact from the disposal in 2014 of
part of the L'Oréal stake combined with the revaluation of the Galderma
stake. There was also some effect from foreign exchange.
* Reported earnings per share at CHF 2.90 were down by 36.1%, for the same
reasons.
* Underlying earnings per share in constant currencies were up 6.5%.

Cash Flow / Working Capital

* The Group'soperating cash flow remained strong at CHF 14.3 billion andfree
cash flow was CHF 9.9 billion or 11.2% of sales. This was the result of our
focus on margins and our discipline in capital expenditure and working
capital, and shows Nestlé's capability to deliver very strong cash flow
despite the challenging foreign exchange environment.
* Average total working capital has improved by 60 basis points from 5.3% of
sales to 4.7%.

Zone AMS

Sales of CHF 25.8 billion, 5.5% organic growth, 1.6% real internal growth;
19.4% trading operating profit margin, +80 basis points

* Growth in the Zone picked up momentum through the year and market shares
grew broadly in both North and Latin America.

* InNorth America growth accelerated, led by the turnaround in the frozen
meals business. * Sales of the new ranges ofLean Cuisine andStouffer's were
strong, supported by positive consumption trends. Pizza's positive momentum
also accelerated, driven by innovation. * In ice cream,Häagen-Dazs and
snacks continued to drive growth with new product launches. * Coffee-mate
maintained its good momentum through constant innovation and renovation of
flavours and packaging as well as new distribution. * Petcare in North
America continued to grow with strong performances fromFancy Feast, Purina
One and cat litter. Increased brand support is helping the recovery
ofBeneful .

* InLatin America we saw good performances in many countries in spite of the
volatile environment. * In Brazil, our business achieved positive organic
and real internal growth despite the challenging, recessionary
environment.Nescafé soluble coffee andNescafé Dolce Gusto ,KitKat andNesfit
were the growth drivers. * Mexico delivered good growth across the entire
portfolio, helped by strong performances in creamers,Nescafé Dolce Gusto
,Nescafé soluble coffee and ambient culinary. * Other highlights were
Chile, driven by ice cream and biscuits, Colombia with ambient culinary,
Peru withNescafé , and the Plata Region and Ecuador with growth across
their portfolios. * Petcare continued its very good growth momentum across
Latin America, benefiting from expanded capacity in Argentina and Mexico.

* We increased investment in consumer facing marketing support while
improving thetrading operating profit margin thanks to a favourable product
mix, operational efficiencies, lower input costs and low restructuring and
litigation costs.

Zone
EMENA

Sales of CHF 16.4 billion, 3.7% organic growth, 2.5% real internal growth;
15.7% trading operating profit margin, +50 basis points

* The Zone continued to outperform the markets in its main categories with
positive contributions from all geographies with good evolution of market
shares despite the economic and political volatility.

* The exceptional performance relative to the environment inWestern Europe
was driven by successful innovation and renovation. * Petcare continued to
deliver growth across the region withFelix andPurina One dry cat food. *
Nescafé Dolce Gusto and frozen pizza with theWagner andBuitoni brands were
the other growth drivers. * Culinary was impacted by the competitive retail
environment and softness in the category. * France, Germany and Benelux
were the highlights and Spain accelerated.

* Solid growth inCentral and Eastern Europe was driven by Russia, Ukraine and
Poland. * Petcare,Nescafé Dolce Gusto ,Nescafé soluble coffee and
confectionery all delivered very good growth across the region, leveraging
strong market positions. * Despite the difficult business context, Russia
had a good year with positive growth and market share gains, especially in
premium coffee.

* In theMiddle East and North Africa there was a solid performance despite
the unstable environment. * There was good growth inNescafé soluble coffee,
confectionery and petcare that was partially offset by softer trading in
ambient dairy. * Saudi Arabia, Kuwait, Qatar and Iran contributed to an
overall solid performance. * Nescafé soluble coffee and chocolate drove the
strong growth in Turkey. * The difficult conditions in Yemen, Libya and
Syria had an impact.

* Thetrading operating profit margin improvement was the result of careful
pricing and significant cost reductions which were partly reinvested in
promotional and marketing activities to generate future growth.

Zone AOA

Sales of CHF 14.3 billion, 0.5% organic growth, -0.1% real internal growth;
18.4% trading operating profit margin, -80 basis points

* The Zone's performance was seriously impacted by theMaggi noodles issue in
India.

* Theemerging markets improved gradually, with China showing increased
momentum towards the end of the year.

* In China our reinvestment inNescafé soluble coffee andNescafé
ready-to-drink products led the growth together withTotole in culinary
andShark wafers in confectionery.
* Hsu Fu Chi delivered a solid performance in a very difficult economic
environment.Yinlu improved but needs more time.
* In India we halted production and sales ofMaggi noodles for five months
while we dealt with allegations made against the product. We began the
return to the market in November.
* Vietnam and Indonesia were the highlights among the other Asian markets.
* Sub-Saharan Africa delivered solid growth despite the pressure from lower
oil prices in several countries. South Africa performed well.

* Thedeveloped markets had another good year with growth across most
categories.

* In Japan the main growth drivers in beverages wereNescafé Dolce Gusto and
the barista machine forNescafé soluble coffee.KitKat remained the highlight
in confectionery, driven by innovation in novel flavours and formats.
* Growth in Oceania was driven by confectionery, mainlyKitKat , and byNescafé
soluble coffee andNescafé Dolce Gusto . Also, there were benefits from
improved management of trade terms.

* The Zone'strading operating profit margin remained strong and accretive...

Författare WKR

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