Nestlè:Annual results and dividend increase 008

Nestlé

Full-Year 2015: 4.2% organic growth, trading operating profit margin up 10 basis points in constant currencies

 4.2% organic growth and 2.2% real internal growth  Sales of CHF 88.8 billion, foreign exchange impact of -7.4%  Trading operating profit margin of 15.1%, up 10 basis points in constant currencies  Underlying earnings per share up 6.5% in constant currencies  Strong operating cash flow at CHF 14.3 billion  Proposed dividend increase to CHF 2.25 per share  2016 outlook: organic growth in line with 2015 with improvements in margins and underlying earnings per share in constant currencies, and capital efficiency Paul Bulcke, Nestlé CEO: “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. 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. At the same time we continued to invest for the future with increased support behind our brands and further development of our new platforms in nutrition and health as well as Ecommerce. We kept up the focus on portfolio management, turning around our frozen food business in the United States, disposing of non-core businesses and forging a new partnership to create a leading player in ice cream. Our free cash flow generation was again at the top end of the food industry at 11.2% of sales, as a result of our focus on margins with discipline in capital expenditure and working capital. Consequently we propose to increase the dividend as we have for the last twenty years. We anticipate that our trading environment in 2016 will be similar to previous years with even softer pricing. As such we expect to deliver organic growth in line with 2015, with improvements in margins and underlying earnings per share in constant currencies, and capital efficiency.”

Group results Sales  In 2015 Nestlé’s organic growth was 4.2%, composed of 2.2% real internal growth and 2.0% pricing.  Total sales of CHF 88.8 billion, with a foreign exchange impact of -7.4%. Acquisitions, net of divestitures, added 0.1% to sales.  Organic growth was broad-based across geographies and categories. o 5.8% in the Americas (AMS) o 3.5% in Europe, Middle East and North Africa (EMENA) o 1.9% in Asia, Oceania and sub-Saharan Africa (AOA)  Real internal growth was also broad-based. o 2.4% in AMS o 2.8% in EMENA o 1.2% in AOA  Continued strength in developed markets with organic growth of 1.9% and in emerging markets with 7.0%.  Increased or maintained market share in the majority of our categories and markets. Trading Operating Profit  Trading operating profit was CHF 13.4 billion, with a margin of 15.1%, down 20 basis points on a reported basis affected by the strong Swiss Franc, up 10 basis points in constant currencies.  We delivered this margin improvement while: o Increasing substantially our investment in brand support, digital, research and development, and in our new nutrition and health platforms. o Absorbing the cost of exceptional events like Maggi noodles in India. Net Profit  Net profit was CHF 9.1 billion. The reduction of CHF 5.4 billion versus last year was mostly due to the one-off impact from the disposal in 2014 of part of the L’Oréal stake combined with the revaluation of the Galderma stake. There was also some effect from foreign exchange.  Reported earnings per share at CHF 2.90 were down by 36.1%, for the same reasons.  Underlying earnings per share in constant currencies were up 6.5%. Cash Flow / Working Capital  The Group’s operating cash flow remained strong at CHF 14.3 billion and free cash flow was CHF 9.9 billion or 11.2% of sales. This was the result of our focus on margins and our discipline in capital expenditure and working capital, and shows Nestlé’s capability to deliver very strong cash flow despite the challenging foreign exchange environment.  Average total working capital has improved by 60 basis points from 5.3% of sales to 4.7%.

Board proposals to the Annual General Meeting At the Annual General Meeting on 7 April 2016, the Board of Directors will propose a dividend of CHF 2.25 per share. The last trading day with entitlement to receive the dividend is 8 April 2016. The net dividend will be payable as from 13 April 2016. Shareholders who are on record in the share register with voting rights on 31 March 2016 at 12:00 noon (CEST) will be entitled to exercise their voting rights. 7/8 The Board will propose the individual election of the current members of the Board of Directors for a term of office until the end of the next Annual General Meeting. Daniel Borel will retire from the Board having reached the 12 year term-limit. We thank him for the valuable contribution he has made to the success of our company. Furthermore, the Board will propose the election of Peter Brabeck-Letmathe as Chairman of the Board of Directors, the individual elections of the members of the Compensation Committee and the election of KPMG as statutory auditors until the end of the next Annual General Meeting. The Board will also submit the compensation of the Board of Directors and the Executive Board for approval by shareholders. In addition, the Board will propose a capital reduction to cancel shares repurchased under the share buy-back programme completed in December 2015. Outlook We anticipate that our trading environment in 2016 will be similar to previous years with even softer pricing. As such we expect to deliver organic growth in line with 2015, with improvements in margins and underlying earnings per share in constant currencies, and capital efficiency

Nestlé


 

Azioni in portafoglio :13

Dividendi incassati :6.14

Nuovo dividendo annuo stimato :13.59

Yoc :1.82%

Payback :0.82%


 

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