Nestlé full-year sales match expectations

The world’s largest packaged food company grapples with deflation in Europe and slowing demand in Asia. Net profit rose CHF 4.4 bn to CHF 14.5 bn. The increase also reflects the profit realised on the disposal of part of the stake in L’Oréal and the revaluation gain on the 50% of Galderma already held when the Group brought its ownership from 50% to 100%. For 2015, Nestle said it is aiming for organic growth of 5% with improvements in margins and underlying earnings per share in constant currencies.

 

The performance in North America was affected by the frozen category. In ice cream the super premium segment performed well with Gelato, and snacks returned to growth, although the premium segment was subdued. In confectionery the successful roll-out of Butterfinger Peanut Butter Cups continued. Nestlé plans to be the first major confectioner in the US to remove all artificial colours and flavouring from its chocolate products, the company announced. “We're excited to be the first major US candy manufacturer to make this commitment," said Ms Doreen Ida, president of Nestle USA Confections & Snacks.