Nestlé: growth in sales and profit slightly negative

According to the company, growth was supported by strong momentum in the Americas, Purina PetCare and Nestlé Health Science. Foreign exchange reduced sales by 7.9% due to the continued appreciation of the Swiss franc against most currencies. Divestitures had a negative impact of 4.6%. As a result, total reported sales decreased by 8.9% to CHF 84.343 bn (2019: CHF 92.568 bn).
The underlying trading operating profit (UTOP) was CHF 14.903 bn (2019: CHF 16.260 bn), the UTOP margin reached 17.7%, up 10 basis points on a reported basis and 20 basis points in constant currency. The trading operating profit (TOP) margin increased by 210 basis points to 16.9% on a reported basis. Underlying earnings per share increased by 3.5% in constant currency and decreased by 4.5% on a reported basis to CHF 4.21. Earnings per share stayed unchanged at CHF 4.30 on a reported basis.

Organic growth in confectionery was slightly negative (- 1,5%), with reduced demand for impulse and gifting products. In 2020 Nestlé`s confectionery category achieved sales of CHF 6.975 bn (2019: CHF 7.888 bn). The underlying trading operating profit was CHF 900 m (2019: CHF 1.332 bn).
Mark Schneider, Nestlé CEO, commented: "2020 was a year of hardship for so many, yet I am inspired by the way it has brought all of us closer together. I want to thank our employees and our partners - from farmers to retailers - who worked with us to ensure the supply of food and beverages to communities globally. In this unprecedented environment, we achieved our third consecutive year of improvement in organic growth, profitability and return on invested capital.”