Nestlé releases 2021 financial results
Nestlé has reported on its full-year results for the 2021 period; in this time it recorded an average growth of 5.5% for the entire company, seeing total sales of 87.1 billion Swiss Francs. During this time its underlying trading operating profits reached CHF15.1 billion, despite its gross margin decreasing to 47.8% due to the impact of inflation on commodity, packaging, freight and energy costs.
Worldwide, coffee proved to be the product with the largest increase in organic growth and in various regions this product brought about the highest financial returns. Plant-based foods also proved to be an important product for the company globally and saw double-digit growth.
The Europe, Middle East and North Africa zone had the highest level of growth, followed by the Americas region.
The Asia, Oceania and sub-Saharan Africa zone was the lowest performing one for the company with its growth representing only 3.5% with financial conditions changing due to divestments in China. However in Oceania strong growth was reported with Purina PetCare, KitKat and Maggi being the driving forces for this region.
“In 2021, we remained focused on executing our long-term strategy and stepping up growth investments, while at the same time navigating global supply chain challenges,” said Nestlé CEO Mark Schneider.
“Our organic growth was strong, with broad-based market share gains, following disciplined execution, rapid innovation and increased digitalisation. We limited the impact of exceptional cost inflation through diligent cost management and responsible pricing. Our robust underlying earnings per share growth shows the resilience of our value creation model. The entire Nestlé team demonstrated exemplary perseverance and agility in a challenging environment.
“Our sustainability agenda further progressed as we enhance the wellbeing of our consumers, help regenerate the environment and strengthen the farming communities in our supply chains.”
The company is making positive predictions for 2022, expecting organic sales growth to be around 5% and profit margins over 17%.
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