Nestlé records annual group sales growth, with plant-based focus and upturn in confectionery markets

The CEO of Nestlé, Mark Schneider, has welcomed latest annual results, as group sales rose 3.3% to CHF 87.1 billion, with confectionery delivering strong performance from KitKat and an uplift for wider gifting categories, writes Neill Barston.

During the past few years, the business has invested significantly in healthier product ranges, which has been reflected in its acquisition of the Bountiful Company, as well as enhancing its portfolio across the board through a focus on research and development into plant-based product ranges.

Furthermore, the business has strengthened its sustainability agenda, assisting farming communities in its supply chains, including the recently announced income accelerator scheme designed to help communities in West Africa serving the cocoa and chocolate sector.

Mark Schneider, Nestlé CEO, commented: “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. 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.

We continued to create value for our shareholders through disciplined capital allocation, steadily increasing dividends and significant share buybacks. Going forward, we are confident in the strength of our value creation model.”

The company recorded high single digit growth within both Europe and the US, with European sales driven by the evolution of the portfolio toward fast-growing categories and channels, as well as innovation. All markets posted positive growth, with strong sales developments that were led by the United Kingdom, Russia, Italy and France. The Zone continued to see broad-based market share gains.

According to the company, its outlook anticipated sales growth around 5% and underlying trading operating profit margin between 17.0% and 17.5%. Underlying earnings per share in constant currency and capital efficiency are expected to increase.