Nestlé has reported 3.2% growth, with sales of CHF 89.5 billion ($89.5 billion) in its full-year financial results for 2016.
The company’s highest performing segments of the business were its powered and beverage divisions, along with its nutrition and health science sections.
Sales for its confectionery segment showed growth of CHF 8.6 billion, which showed year-on-year growth of 1.8% for the company.
As a result, the business has projected growth of between 2% and 4% for 2017, with stable growth in operating margins expected.
The company confirmed that it is to undertake further investment while making operating efficiencies to significantly reduce its structural cost by 2020.
In Latin America, its KitKat brand grew in double digits within Brazil, and growth was also reported in Mexico.
However, there remained challenges for the business, reporting disappointing performance in the US due to strong competition and low overall market growth.
Mark Schneider, Nestlé CEO, said: "Our 2016 organic growth was at the high end of the industry but at the lower end of our expectations. We saw a solid trading operating profit margin improvement and our cash flow grew significantly. Based on these results, our Board of Directors is pleased to propose the 22nd consecutive dividend increase, underlining our commitment to continuity.
“In 2017, we expect organic growth between 2% and 4%. In order to drive future profitability, we plan to increase restructuring costs considerably in 2017. As a result, the trading operating profit margin in constant currency is expected to be stable. Underlying earnings per share in constant currency and capital efficiency are expected to increase.”
Angus Kennedy, Editor of Kennedy’s Confection, interviews Bas Smit, Head of Marketing, Barry Callebaut N.V., live at the London Chocolate Forum this month. Bas revealed the findings for the first time of their latest chocolate consumer insights; a result of over a year of comprehensive research
Sign up to Kennedy’s e-newsletter bringing you regular industrial confectionery technology alerts all year round.
Kennedy’s Confection Technology Alert Newsletter
7 OCTOBER 2016
It’s time to meet, share ideas, network and do business, held at the America Square Conference Centre, London
Click for more information and to register for an invitation for your free place at the world’s biggest industrial chocolate conference (conditions apply)
Sign up to Angus' irreverent weekly blog - Friday Light.
Bespoke writing projects, public speaking, consultancy, author of 8 books, media engagements, TV and more.
Visit Angus’ web site, sign up to his unpredictable blog and tune into the other side of your trusted editor!