Organic growth in 2019 fully in line with Nestlé`s guidance

Organic growth reached 3.5%, fully in line with the company`s guidance. Real Internal Growth (RIG) accelerated to 2.9% for the full year – the highest level in the last six years. According to Nestlé, growth was supported in particular by innovation and portfolio management. Pricing contributed 0.6% and returned to positive territory in the fourth quarter.

Underlying trading operating profit increased by 4.8% to CHF 16.3 bn. The underlying trading operating profit margin reached 17.6%, an increase of 60 basis points in constant currency and on a reported basis. Net profit increased by 24.4% to CHF 12.6 bn, and earnings per share increased by 28.0% to CHF 4.30. Net profit benefited from the sale of Nestlé Skin Health.

Year-on-year organic growth acceleration was supported by strong growth in the United States and Brazil, as well as improved momentum in Western Europe. Zone AOA saw solid growth despite softness in some categories in China and Pakistan. Organic growth accelerated to 2.6% in developed markets and remained largely unchanged in emerging markets at 4.7%.

Sales in the product group confectionery were CHF 7.888 bn (2018: CHF 8.123 bn). Organic growth in this category reached 1.9%. RIG was 3.2%.