Nestlé: growth supported by stronger momentum in the USA and China

According to the company, organic growth was 3.0%, with continued strong real internal growth (RIG) of 2.5% and pricing of 0.5%. Growth was supported by stronger momentum in the United States and China, as well as in infant nutrition.

The underlying trading operating profit (UTOP) margin reached 17.0%, up 50 basis points. The trading operating profit (TOP) margin increased by 30 basis points to 15.1%, reflecting higher restructuring-related expenses. Earnings per share increased by 45.5% to CHF 3.36 on a reported basis. Underlying earnings per share increased by 13.9% in constant currency and by 13.1% on a reported basis to CHF 4.02.

Mark Schneider, Nestlé CEO, said: "We are pleased with our progress in 2018. All financial performance metrics improved significantly and we saw revived growth in our two largest markets, the United States and China, as well as in our infant nutrition business. Nestlé keeps investing in future growth and – at the same time – has increased the amount of cash returned to shareholders through our dividend and share buyback program. We made significant progress with our portfolio transformation and sharpened our Group’s strategic focus, strengthening key growth categories and geographies in the process.”