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Nestle's organic growth was 4.5%

Staff writer |
In 2014 Nestlé's organic growth was 4.5%, composed of 2.3% real internal growth and 2.2% pricing.

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Sales were CHF 91.6 billion, down 0.6%, impacted by negative foreign exchange of -5.5%. Acquisitions, net of divestitures, added 0.4% to sales.

The Group's trading operating profit was CHF 14.0 billion, representing a margin of 15.3%, up 10 basis points, and up 30 basis points in constant currencies.

The cost of goods sold fell by 30 basis points as a percentage of sales, driven by product mix and pricing actions and savings created by Nestlé Continuous Excellence which more than offset increases in raw material costs. Distribution costs were up by 10 basis points.

Total marketing and administration expenses rose by 10 basis points as we increased consumer facing marketing support for our brands.

Net profit rose CHF 4.4 billion to CHF 14.5 billion. The increase also reflects the profit realised on the disposal of part of the stake in L'Oréal and the revaluation gain on the 50% of Galderma already held when the Group brought its ownership from 50% to 100%. Reported earnings per share were CHF 4.54, up 44.6%.

Underlying earnings per share in constant currencies were up 4.4%. The Group's operating cash flow remained strong at CHF 14.7 billion.


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