Nestle, the world’s largest food and beverage manufacturer, has posted 8.1% growth in its half-year financial results.
According to the report, sales hit CHF41.8 billion ($45.98 billion), up from CHF41.2 billion ($45.32 billion) the same period last year.
The company’s mid-year results also reported 6.8% real internal growth as well as 1.3% growth in pricing.
On the back of the inspiring half-year results, the company has announced an update to its 2021 full-year outlook, with end of year organic sales expected to grow between 5% and 6%.
The Swiss multinational says the positive growth was supported by continued momentum in retail sales, a return to growth in out-of-home channels, increased pricing and market share gains.
It said its underlying trading operating profit (UTOP) margin remained unchanged at 17.4%, whereas the trading operating profit (TOP) margin decreased by 20 basis points to 16.7%.
The group’s half-year results also saw underlying earnings per share increased by 10.5% in constant currency and increased by 8.3% on a reported basis to CHF 2.17.
Nestle’s mid-year earnings per share increased by 3.2% to CHF 2.12 on a reported basis, as free cash flow was CHF 2.8 billion.
“I would like to thank the Nestlé team for their continued commitment to meeting consumer needs and their relentless focus on execution. Organic growth was strong across most geographies and categories, with robust momentum in retail sales and a return to growth in out-of-home channels,” commented Mark Schneider, Chief Executive Officer of Nestle.
The Nestle CEO indicated that “Through fast-paced innovation, strong brand support, increased digitalization and stringent portfolio management we have built the foundation for delivering consistent mid single-digit organic growth for years to come.”
He added, “Nestlé continues to invest for future profitable growth. We are creating a global leader in vitamins, minerals and supplements with the acquisition of The Bountiful Company’s core brands.”
“The expansion of our partnership with Starbucks into ready-to-drink coffee will open new opportunities in a fast-growing segment. Our portfolio choices, strong execution and decisive actions on sustainability enable us to create value for all stakeholders,” noted Schneider.
Beyond 2021, Nestle says its mid-term outlook for continued moderate margin improvement remains unchanged, hinting of growth expectations in underlying earnings per share at the end of the year.
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