Nestlé reports full-year results for 2018
Date 02.14.2019 | Category: News
Nestlé has published the results oof the business year 2018:
• Organic growth of 3.0%, with continued strong real internal growth (RIG) of 2.5% and pricing of 0.5%. Growth was supported by stronger momentum in the U.S. and China, as well as in infant nutrition.
• Total reported sales increased by 2.1% to CHF 91.4 billion (2017: CHF 89.6 billion). Net acquisitions had a positive impact of 0.7% and foreign exchange reduced sales by 1.6%.
• The underlying trading operating profit (UTOP) margin reached 17.0%, up 50 basis points. The trading operating profit (TOP) margin increased by 30 basis points to 15.1%, reflecting higher restructuring-related expenses.
• Earnings per share increased by 45.5% to CHF 3.36 on a reported basis. Underlying earnings per share increased by 13.9% in constant currency and by 13.1% on a reported basis to CHF 4.02.
• Free cash flow of CHF 10.8 billion, up 15%.
• Proposed dividend increase of 10 centimes to CHF 2.45 per share. Nestlé intends to complete the current CHF 20 billion share buyback program six months ahead of schedule by the end of 2019, reflecting the strong free cash flow generation. During 2018, CHF 13.9 billion were returned to shareholders through dividends and share buybacks.
• Nestlé will explore strategic options for the Herta charcuterie (cold cuts and meat-based products) business as a further step in positioning the portfolio towards attractive high-growth categories.
• 2019 Outlook: continued improvement in organic sales growth and underlying trading operating profit margin towards our 2020 targets. Underlying earnings per share in constant currency and capital efficiency are expected to increase.
Source: NestléAuthor: Sossna