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Nestle net profit down 37%

The world’s largest food company Nestle has reported a 37 per cent drop in net profit, as CEO Paul Bulcke nears the end of his tenure.

AAP reports that the profit drop was caused by a number of factors, including the strengthening Swiss franc, re-evaluation of Nestle’s stake in the Galderma dermatological pharmaceutical business and the 2014 sale of its stake in cosmetics company, L'Oreal.

“In 2015 we delivered profitable growth at the higher end of the industry in what is still a challenging environment. This profitable growth was on the back of consistent performances in previous years,” commented Bulcke.

 “Our organic growth of 4.2% was supported by increased momentum in real internal growth combined with continued margin improvement. Additionally, we grew or maintained market share in the majority of our categories and markets.”

The company delivered a trading operating profit margin of 15.1%, up 10 basis points in constant currencies, and has proposed a dividend increase to CHF 2.25 per share.

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