Nestlé records nine-month growth amid renewed drive tackling deforestation
The Nestlé group, which manufacturers key confectionery brands including KitKat, has confirmed that for the first nine months of its present financial year, the company has seen 2.9% overall sales growth, to CHF 68.4 billion.
According to the latest figures, which include 3.7% organic growth rates (which do not include currency variations and effects of acquisitions), the company forecast a continued upturn in its results as its portfolio of products across the wider food and drinks market increases.
The company said that it will continue to work with smallholder farmers and large suppliers alike to be close to 100% deforestation-free within the next three years, as well as confirming plans to return $20 billion to its shareholders by 2022 in light of its present performance.
One of its Swiss-headquartered businesses’s key international results for 2019 has been the completion of its skincare company. This raised a total of CHF 10.2 billion, with the deal completing earlier this month. This will free capital for the firm to make further investments across its range of activities.
As the business explained, it presently provides technical assistance to almost 50,000 smallholder farmers. Consequently, it added that it is intensifying initiatives to help them increase crop productivity and diversify incomes. The aim is to make forest conservation economically attractive, restore forestry stocks and promote regenerative agriculture, which help capture carbon from the atmosphere. Linked to this is the company’s ambition of being zero net greenhouse gas emissions across its value chain by 2050.
Mark Schneider, Nestlé CEO, said :”We are pleased with our nine-month results and have made further progress towards our 2020 financial goals. We continue to see good momentum in our largest market, the United States and very strong growth for Purina PetCare globally. Nestlé’s growth was supported by investment behind our brands, rapid innovation and disciplined execution. During the third quarter, the roll-out of Starbucks products continued, now reaching 34 countries. Our portfolio transformation is fully on track, as shown by the timely completion of the Nestlé Skin Health disposal. With prudent investments and a disciplined approach to acquisitions our value creation model is generating profitable growth and attractive cash returns for our shareholders.”
