Nestle has announced a profit increase for 2021, with growth driven by retail sales momentum, a steady recovery in off-site operations, rising prices and increased market share.
The Swiss food and beverage group said net profit stood at 16.9 billion francs ($ 18.29 billion) from 12.23 billion francs a year ago.
Sales increased to 87.09 billion francs, from 84.34 billion francs. Organic growth stood at 7.5%, supported by strong momentum in the coffee category, while real domestic growth stood at 5.5%.
Prices rose to 2%, reaching 3.1% in the fourth quarter as the company set a target to offset significant cost inflation.
Regarding the current year, Nestle stressed that it expects an increase in organic sales by 5% and an underlying operating profit margin between 17% -17.5%.
In the medium term, the company expects steady medium-single-digit sales growth and continued improvement of the underlying operating profit margin.
Nestle has said it will propose a dividend of 2.80 francs per share at its general meeting on April 7, an increase of 5 Swiss francs.
Source: Capital
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