Nestlé’s 2021 full-year results revealed organic growth of 7.5 per cent, driven by retail sales, increased pricing, and market share gains.
The largest contributor to the organic growth was coffee, with strong momentum reported from Nescafé, Nespresso, and Starbucks.
Mark Schneider, CEO of Nestlé, said the company remained focused on executing its long-term strategy and stepping up growth investments, while at the same time navigating global supply chain issues.
“Our organic growth was strong, with broad-based market share gains, following disciplined execution, rapid innovation and increased digitalization. We limited the impact of exceptional cost inflation through diligent cost management and responsible pricing. Our robust underlying earnings per share growth shows the resilience of our value creation model.”
E-commerce experienced a significant increase in sales, growing by 15.1 per cent, with the channel now accounting for 14.3 per cent of total group sales.
In Zone Asia, Oceania and sub-Saharan Africa (AOA), the zone in which Australia is in, organic growth increased by 4.2 per cent, with the main drivers again being in the coffee category as Nescafé and Starbucks released new products.
“We continued to create value for our shareholders through disciplined capital allocation, steadily increasing dividends and significant share buybacks. Going forward, we are confident in the strength of our value creation model.”
Looking ahead to 2022, the company expects organic sales growth of around 5 per cent and an underlying trading profit margin of between 17 and 17.5 per cent.