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Financial year 2012: good overall figures, Nestlé model back implemented

  • Turnover: CHF 92,2 billion, CHF 8,6 billion or 10.2 %.
  • 5.9%OG( organic growth , 3.1% RIG (real internal growth or real turnover growth in comparable volumes).
  • Operating profit increased by 11,8 % to 14 billion; profitability increased by 0,2 % to 15,2 %.
  • Earnings per share rose by 12,2 % to CHF 3,33.
  • The value of dividends to be paid has increased to CHF 2,05 per share.
  • Operating cash flow increased by CHF 5,6 billion. — up to CHF 15,8 billion
  • Forecasts for 2013: 5-6 % OG (organic growth),higher operating trading profitability and higher real earnings per share in constant currencies.

Paul Bulcke, Nestlé manager: "In 2012, we achieved our goal of successful and extensive development based on the constant growth of previous years, which delivers profits. All our companies in both developed and emerging markets have contributed. Our diet, health and healthy lifestyle plan continued to deliver great benefits for consumers, greater brand diversity in the marketplace and increasing company value for shareholders. Our creative and innovative team laid the foundations for future growth. We developed our brands as well as strengthened our global R&D network by expanding production in India and China. We developed new technological opportunities for a subsidiary, Nestlé Health Science, and acquired Wyeth Nutrition. We have invested responsibly and sustainably, expanding production, but at the same time continuing to reduce its environmental impact. Despite the many challenges we will definitely face in 2013, we hope to implement Nestlé's 5-6% OG (organic growth) model, as well as increase the return on core trading and real earnings per share in constant currencies."

 

Group results

Vevey, February 14, 2013. Nestlé's turnover had increased by CHF 8,6 billion. or 10,2 % to CHF 92,2 billion. According to the positive trend of recent years, organicgrowth (organic growth)was 5.9 %, of which 3.1 % was accounted for by RIG(real internal growthor real turnover growth in comparable volumes) and 2.8 % by price increases. After several years in which foreign currency had a negative impact on the company, it accounted for 1.7 % of turnover, while acquisitions and disposals of enterprises accounted for 2.6 %.

 
  • The group's operating profit was CHF 14,0 billion, an increase of 1,5 billion or 11,8 %. The operating profitability of trading was 15,2 %, which is an increase of 0,20 % and an increase of 0,10 % in constant currencies.
  • The cost price of goods for sale decreased by 0.30 % and distribution costs decreased by 0.20 %. Improvements to nestlé Continuous Excellence made it possible to save CHF 1.5 billion by adding to the savings of previous years.
  • We have increased our brand market support, achieving a 0.30% increase in total marketing costs. Marketing costs increased by around 8 % in constant currencies.
  • Administrative costs increased by 0.20 % after they decreased by 0.80 % in 2011 as a result of the restructuring of pension schemes.
  • Net profit increased from CHF 1,1 billion. to CHF 10,6 billion and earnings per share increased by 12,2 % to CHF 3,33.
  • We increased operating cash flow by CHF 5.6 billion. — up to CHF 15,8 billion, indicating a significant improvement in working capital.
 

Business overview

 
  • The Nestlé group experienced broad growth in all categories and business regions, reaching 5.9% of OG(organic growth)in America, 2.4% in Europe and 10.3% in Asia, Oceania and Africa.
  • Despite the problematic trading environment in developed countries, our innovative products, systems and distribution routes allowed for 2.5% organic growth. Emerging markets saw growth of 11 %, reaching CHF 39,3 billion. Turnover.
  • We continued to work to strengthen our position as a trusted leader in nutrition, health and healthy lifestyles. We continued to improve product recipes to make them healthier and tastier. We improved our R&D capabilities to provide good nutritional value and develop solutions to make life easier for people suffering from diet-related diseases. We continued to build cooperation with organisations that actively fight chronic diseases. We acquired Wyeth Nutrition and a number of new technological opportunities for subsidiary Nestlé Health Science. We opened the Nestlé Institute of Health Sciences, created two new R&D facilities and a new R&D center in India in China, and opened an international clinical research center in Switzerland.
 

European region

 

CHF 15,4 billion turnover, 1.8 % OG(organic growth),1.1 % RIG(real internal growthor real turnover growth in comparable volumes), 15.7 % operating profitability – 0.10 %.

  • The company developed successfully in both Western and Central and Eastern Europe, proving that even in a challenging market environment, significant market growth and an increase in market share are possible.
  • In Western Europe, growth continued at the pace of the previous year. Driven by successful innovation and a careful approach to innovation, this growth allows the company to increase its investment in brands and profitability. This growth rate could therefore remain in 2013. The market conditions in Greece and Spain were extremely difficult, but we were able to achieve good results. The company also developed successfully in the UK, where we achieved great success in fast-growing online, food retail and low-cost channels. In France, we increased our market share in most categories. The whole region's growth continued to be based on the Nescafé Dolce Gustobrand , and Maggi also made good progress in many markets. As for pet food, which is also an essential group of products, the best results were for the highest quality category, especially Felix, Gourmet, Proplan and Purina ONE.
  • In Central and Eastern Europe, we have strengthened our competitive position in the coffee and pet food category by developing local production and distribution opportunities. In Russia, Nescafé, ice creamand chocolate, continued to succeed, together forming part of the positive real internal growth. Good sales figures have also been achieved in other parts of the region.
  • Core trading profitability increased by 0.10%, reflecting broad growth and good cost management, and this was achieved by increasing investment in brands. This success complemented growth of 2,30 % in 2011.
 

Nestlé Waters

 

CHF 7,2 billion turnover, 6.4 % OG(organic growth),4.9 % RIG (real internal growth; Operating profitability of 8,9 % — 0,90 % increase.
Nestlé Waters continued to show good results, strengthening its position in developed markets in North America and Europe and expanding its business in emerging
markets. The investment was made by the successful sales figures of high-quality brands, S. Pellegrino and Perrier. Nestlé Pure Life strengthened its leading position in the international market by increasing gross revenues by double digits, proving that healthy water use habits are at the heart of the growth of the bottled water category.

 

Nestlé Nutrition

 

CHF 7,9 billion turnover, 6,7 % of OG(organic growth),3,0 % RIG ( real internal growth ( realturnover growth in comparable volumes); 19,2 % operating profitability, 0,80 % decrease. In 2012, baby food hadgood sales figures , especially in emerging markets including the BRIC countries (Brazil, Russia, India, China) and Africa, achieving double-digit measured percentage growth in both the milk mixture and porridge categories.

Despite the low birth rate, growth was also observed in developed markets , not particularly France and the USA, where the company increased its market share. Innovation included the further introduction of the new anti-cola milk mixture, Gerber fruit purees and long-keeping infant yogurts on the US market. The acquisition of Wyeth Nutrition, which was completed in November, materials will improve our position and capabilities in key emerging markets, as well as improve the growth profile in the food category.

 

Other indicators

 

CHF 13,9 billion turnover, 8,7 % organicgrowth,6,5 % RIG(real internal growth,17,2 % operating profitability, 0,40 % growth).

 
  • Nestlé Professional's sales figures in developed markets increased and reached double-digit percentage growth in emerging markets, much of which came from food and beverages. The beverage category showed good overall growth, based on double-digit percentage growth in system solutions, the turnover of which has now reached CHF 1 billion for the first time. Nescafé Alegria is now available in more than 60 markets, while Nescafé Milano is available in more than 30 markets and continues to expand. Food category indicators also grew steadily, supported by solutions for sweet and rich flavors and close cooperation with consumers.
  • Nespresso pārdošanas rādītāji atkal būtiski uzlabojās, sasniedzot ar divciparu skaitli mērāmu procentuālo izaugsmi. Uzņēmums turpināja nostiprināt savu pozīciju Eiropā un strauji paplašināja savu darbību Āzijas un Klusā okeāna reģionā un Amerikā. Inovāciju vidū bija pieci jauni Grand Cru kafijas veidi un divi jauni kafijas automāti, Maestria un U. Veikalu tīkls paplašinājās par 52 jauniem veikaliem, kopā aptverot 300 atrašanās vietas 48 valstīs, un Nespresso Club dalībniekiem tika piedāvāti jauni pakalpojumi. Vairāk nekā divas trešdaļas no savas zaļās kafijas Nespresso ieguva no unikālās programmas AAA Sustainable Quality un gadu pirms plānā noteiktā termiņa sasniedza savu mērķi par 75 % otrreizējo izejvielu pārstrādi.
  • Nestlé Health Science turpināja ieguldīt savā pamatattīstībā un tehnoloģiskajās iespējās, investējot uzņēmumā Accera un izveidojot kopuzņēmumu ar Chi-Med grupu, to nosaucot par Nutrition Science Partners. Mēs izveidojām Nestlé Institute of Health Sciences. Produktu portfelis guva labus panākumus, neskatoties uz dažu Dienvideiropas tirgu problemātisko vidi, ko ietekmēja izmaiņas algu politikā. Uzņēmumi Aging Medical Care un Critical Care and Surgery sekmīgi darbojās, jo tika izstrādātas produktu inovācijas un jauni produkti — ieviesti tirgū.
  • Cereal Partners Worldwide sasniedza ar divciparu skaitli mērāmu procentuālo izaugsmi jaunajos tirgos, kas kompensēja vājo kategorijas dinamiku attīstītajos tirgos. Beverage Partners Worldwide pārstrukturizācija ir pabeigta. Farmācijas kopuzņēmumi Galderma un Laboratoires innéov kopā sasniedza vidēju ar viencipara skaitli mērāmu procentuālo izaugsmi.
 

Pozitīvas prognozes par 2013. gadu

 

Tirgus vide 2013. gadā izskatās tikpat problemātiska kā 2012. gadā. Taču 2013. gads sniegs jaunas iespējas izmantot mūsu konkurētspējīgās priekšrocības un izaugsmes iespējas un tiekties pēc starptautisko rādītāju uzlabošanas. Tādēļ mēs sagaidām, ka 2013. gadā atkal tiks īstenots Nestlé modelis: 5–6 % OG (organic growth jeb organiskā izaugsme), lielāks tirdzniecības pamatdarbības ienesīgums un lielāki reālie ieņēmumi uz vienu akciju konstantā valūtā, kā arī kapitāla efektivitātes palielināšanās.