Nestle reports strong 2011 result and expects growth to continue
- February 17, 2012
- Luke Creely
Global giant Nestlé yesterday released its annual report for 2011 and revealed a positive set of results. Nestlé’s impressive report included an overall sales figure of CHF 83.6 billion, a trading profit of CHF 12.5 billion, and a net profit of 9.5 billion, up 8.1% from 2010.
Nestlé’s underlying earnings per share (EPS) increased 7.8% in constant currencies.
Nestlé CEO, Paul Bulcke, said he was pleased with the 2011 results: “we delivered good performance, top and bottom line, in both emerging and developed markets in 2011,” he said.
Mr. Bulcke highlighted areas of further growth and development in 2012.
“It was a challenging year, and we do not expect 2012 to be any easier,” he said.
Nestlé innovations in 2011included the birth of Nestlé Health Science, which is involved in medical and health care, including surgery and ageing medical care, and the continued growth of Nespresso and Nestlé Waters globally.
Nestlé Health Science reported double digit growth.
“Our innovation is creating opportunities in all categories, whether bringing new consumers to our brands in emerging markets, or building on our consumers’ engagement with our brands in the developed world,” Mr. Bulcke said.
Nespresso grew over 20% on a sale basis for 2011. The Nespresso division has developed innovative products and services that now include boutiques, e-commerce, and call centres, all of which fostered the growth of Nespresso during 2011. The theme of Nespresso is to develop intimacy with its customers.
Nestlé Waters achieved an overall sales figure of CHF 6.5 billion, 5.2 % organic growth, and 8% trading operating profit margin. The substantial growth of its products saw a double digit return worldwide, with strong performances in France, Italy, Germany and the UK.
Regional variations in results
Nestlé’s annual report revealed significant growth in its various global regions, including 5% organic growth in Europe, 6.4% growth in the Americas, but the biggest increase in growth was 13.1% growth for Asia, Oceania and Africa. Additional global ties were formed during 2011 with consumers in developing countries. Mr. Bulcke views investments in these developing geographic areas as a significant platform for Nestlé’s future expansion and development.
“We have continued to invest for the future and strengthen our capabilities across the world. We have established new partnerships in China,” he said.
Nestlé established partnerships with Yinlu and Hsu Fu Chi in 2011 and engaged with Chinese investors. This partnership appears to be a strategic move to strengthen Nestlé’s global connections.
The results were good for Australia, with 13.1% in organic growth in Oceania, which includes areas of Australia, New Zealand and the Pacific.