Nestle: FY 2009 organic growth at 4,1 percent

Vevey / CH. (nsa) Nestle S.A., the world´s biggest food group, surpassed expectations with 4,1 percent organic growth for 2009, weathering the economic woes better than its competitors. Nestle´s full-year sales for 2009 were 108 billion Swiss Francs (CHF). Other highlights:

• Nestle Group:
  • Sales of 108 billion CHF; 4,1 percent organic growth; 1,9 percent real internal growth.
  • EBIT of 15,7 billion CHF; margin up 30 basis points, up 40 basis points in constant currencies.
  • Underlying earnings per share increase by 9,6 percent to 3,09 CHF; plus 16,3 percent in constant currencies.
  • Operating cash flow rises by 67 percent or 7,2 billion CHF to 17,9 billion CHF.
  • Return on invested capital including goodwill up 90 basis points to 15,6 percent.
• Nestle Food and Beverages:
  • Sales of 100 billion CHF; 3,9 percent organic growth; 1,6 percent real internal growth.
  • EBIT of 13,1 billion CHF; margin up 30 basis points, up 40 basis points in constant currencies.
• Shareholder returns:
  • Proposed dividend increase of 14,3 percent to 1,60 CHF; a pay-out ratio of 51,8 percent based on underlying EPS.
  • Ten billion CHF of shares to be bought back in 2010.

Paul Bulcke, Nestle CEO: «With organic growth of 4,1 percent achieved in last year´s challenging environment, we were able to grow substantially faster than our industry. Combined with the further significant improvement of the EBIT margin, we delivered on our projection in line with the long-term Nestle Model. We stepped up investment in our brands and the pace of our innovation, adapted our products to the changing needs of consumers and further accelerated efficiencies. These actions, together with the disciplined alignment of our people behind clear strategic priorities, allowed us to again combine a strong top and bottom line performance in 2009, coming on top of excellent results in 2008. Our 2009 performance was broad-based across all categories and regions and demonstrates our ability to deliver in the short term whilst continuing to invest for the long term. For 2010, I expect our Food and Beverages business to achieve higher organic growth than in 2009 and a further EBIT margin increase in constant currencies. This confidence is also reflected in our increased dividend proposal as well as our share buyback plans for the year».

Info: Strong top and bottom line performance in 2009 – Organic growth plus 4,1 percent – EBIT margin 14,6 percent – plus 30 basis points (complete press release).