To Press Releases listVevey,feb 15, 2018
Nestlé reports full-year results for 2017
• Organic growth of 2.4%, with 1.6% of real internal growth (RIG) and pricing of 0.8%.
• Total reported sales increased by 0.4% to CHF 89.8 billion (2016: CHF 89.5 billion). Net divestments had a negative impact of 1.9% (mainly due to the creation of the Froneri joint venture).
• Underlying trading operating profit margin ahead of expectations, up 50 basis points in constant currency and up 40 basis points on a reported basis to 16.4%.
• Trading operating profit margin decreased by 60 basis points on a reported basis to 14.7%, in line with our October 2017 expectations. This included a CHF 900 million increase mainly in restructuring and related costs to CHF 1.5 billion.
• Underlying earnings per share increased by 4.7% in constant currency and by 4.6% to CHF 3.55 on a reported basis.
• Proposed dividend increase of 5 centimes (2.2%) to CHF 2.35 per share.
• Nestlé announces Board decisions regarding the Gerber Life Insurance business and the L’Oréal investment.
• 2018 Outlook: organic sales growth between 2% and 4%; underlying trading operating margin improvement in line with our 2020 target. Restructuring costs1 are expected at around CHF 700 million. Underlying earnings per share in constant currency and capital efficiency are expected to increase.