Nestlé Results 2023: total reported sales were CHF 93.0 billion
Source: The DairyNews
Swiss multinational food and beverage giant Nestlé has unveiled its full-year results for 2023, showcasing robust performance despite challenging global conditions.
Organic growth stood strong at 7.2%, driven by a combination of pricing at 7.5% and real internal growth (RIG) at -0.3%. This growth was well-distributed across geographies and product categories. While total reported sales were CHF 93.0 billion, reflecting a modest decrease of 1.5% compared to FY-2022 (CHF 94.4 billion), foreign exchange fluctuations took a toll, contributing to a 7.8% decrease. Net divestitures further impacted sales negatively by 0.9%.
The underlying trading operating profit (UTOP) margin demonstrated resilience, reaching 17.3%, marking a 20 basis points increase on a reported basis and a notable 40 basis points rise in constant currency. The trading operating profit (TOP) margin exhibited even stronger performance, surging by 160 basis points to 15.6%.
Underlying earnings per share exhibited solid growth, increasing by 8.4% in constant currency and maintaining a marginal 0.1% growth on a reported basis, reaching CHF 4.80. The overall earnings per share saw a substantial uptick of 23.7% to CHF 4.24 on a reported basis, primarily influenced by one-off items in the prior year.
Nestlé's free cash flow demonstrated a significant uptrend, reaching CHF 10.4 billion, reflecting a substantial increase of CHF 3.8 billion attributable to a noteworthy reduction in working capital.
The Board has proposed a dividend of CHF 3.00 per share, indicating a 5-centime increase and marking an impressive 29 consecutive years of dividend growth. Shareholders benefited from a return of CHF 12.8 billion in 2023 through a combination of dividends and share buybacks.
Looking ahead to 2024, Nestlé anticipates organic sales growth of approximately 4% and a moderate rise in the underlying trading operating profit margin. Underlying earnings per share, in constant currency, are expected to witness a growth ranging between 6% and 10%.
Reaffirming its mid-term targets for 2025, Nestlé aims for mid single-digit organic sales growth and an underlying trading operating profit margin in the range of 17.5% to 18.5%. Underlying earnings per share, in constant currency, are anticipated to increase by 6% to 10%, maintaining a trajectory of sustained and strategic growth over the coming years.
1 CHF = 1,4 USD
The underlying trading operating profit (UTOP) margin demonstrated resilience, reaching 17.3%, marking a 20 basis points increase on a reported basis and a notable 40 basis points rise in constant currency. The trading operating profit (TOP) margin exhibited even stronger performance, surging by 160 basis points to 15.6%.
Underlying earnings per share exhibited solid growth, increasing by 8.4% in constant currency and maintaining a marginal 0.1% growth on a reported basis, reaching CHF 4.80. The overall earnings per share saw a substantial uptick of 23.7% to CHF 4.24 on a reported basis, primarily influenced by one-off items in the prior year.
Nestlé's free cash flow demonstrated a significant uptrend, reaching CHF 10.4 billion, reflecting a substantial increase of CHF 3.8 billion attributable to a noteworthy reduction in working capital.
The Board has proposed a dividend of CHF 3.00 per share, indicating a 5-centime increase and marking an impressive 29 consecutive years of dividend growth. Shareholders benefited from a return of CHF 12.8 billion in 2023 through a combination of dividends and share buybacks.
Looking ahead to 2024, Nestlé anticipates organic sales growth of approximately 4% and a moderate rise in the underlying trading operating profit margin. Underlying earnings per share, in constant currency, are expected to witness a growth ranging between 6% and 10%.
Reaffirming its mid-term targets for 2025, Nestlé aims for mid single-digit organic sales growth and an underlying trading operating profit margin in the range of 17.5% to 18.5%. Underlying earnings per share, in constant currency, are anticipated to increase by 6% to 10%, maintaining a trajectory of sustained and strategic growth over the coming years.
1 CHF = 1,4 USD
