Nestle reports £6.5bn annual profit
Thursday 16 February 2012
Food and drinks giant Nestle has posted a full-year net profit of 9.5
billion Swiss francs (£6.5 billion) that reflected
stronger-than-expected sales growth of 7.5% - but it predicted a tough
Analysts had predicted sales growth of about 7% as the world's biggest food and drink company grappled with volatile markets, rising commodity prices and the strength of the Swiss franc for dragging down profits.
The Swiss company reported that its earnings for 2011 reached 83.6 billion francs (£57.5 billion), a drop that was slightly less than expected from almost 110 billion francs (£75.6 billion) in 2010.
That was in part due to the Swiss central bank's intervention in the latter half of the year to weaken its safe-haven currency which had soared against the dollar and the euro over the summer, dragging down profits.
But 2011 net profit from the maker of Nescafe, Perrier, Jenny Craig and Haagen Dazs compares with a full-year 2010 profit of 34.23 billion Swiss francs (£23.5 billion) that was inflated by the sale of its stake in eye care company Alcon and added 24.5 billion francs (£16.8 billion) net to its balance sheet.
Chief executive Paul Bulcke said the sales growth rate is expected at between 5% and 6% in the coming year.
"We delivered good performance, top and bottom line, in both emerging and developed markets in 2011. It was a challenging year, and we do not expect 2012 to be any easier," he said.
Mr Bulcke cited new partnerships in China and a huge new research centre in Lausanne, Switzerland, as helping Nestle get off to "a good start" this year.
With 280,000 employees worldwide and factories or operations in almost every country in the world, Nestle is a major buyer of food commodities such as wheat, sugar, milk and coffee and its results are a good indicator of consumer demand and the health of the global economy as a whole.
- 1 Tourist films plane's descent just metres above packed Caribbean beach
- 2 Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
- 3 World Book Day: Boy 'excluded' from school after dressing up as Fifty Shades' Christian Grey
- 4 Bad Jews poster 'censored' on London Tube
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Tourist films plane's descent just metres above packed Caribbean beach
Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
Isis 'bulldozes' Nimrud: UNESCO condemns destruction of ancient Assyrian site as a 'war crime'
Professor Brian Cox brands astrology-believing Tory MP David Tredinnick an 'outlier on the spectrum of reason'
Lynch mob kills suspected rapist in India after dragging him naked for four miles through city
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Durham Free School: 'Creationism taught at' free school facing closure
End of the licence fee: BBC to back radical overhaul of how it is funded
Elif Shafak: Turkish author warns against rise of British nationalism
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£12 - £15 Hourly Rate: Jemma Gent: In this role you will report to the Head of...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...