Swiss multinational food company, Nestlé has reported sales increased by 8.4 percent increase to reach CHF 94.42 billion ($102.22 billion) in 2022, according to the company's full year report showed on Friday. The company explained that net acquisitions impacted it with 1.1 percent increase, while foreign exchange impacted with 0.9 percent decrease. Nestlé has achieved 8.3 percent organic growth while pricing increased with 8.2 percent; reflecting the huge inflation in production cost, the company stated. The Real internal growth (RIG) was stable at 0.1 percent; with large-scale organic growth including most categories and geographic locations. The firm has mentioned the underlying trading operating profit margin decreased 30 basis points (bps) in announced outcomes reaching 17.1 percent, and 40 bps in constant currency. Nestlé pointed out its earning per share has increased 9.4 percent in constant currency and 8.4 in announced results; reaching CHF 4.80 Annual underlying earnings per share growth. However, it has decreased with 43.5 percent and reached CHF 3.42 according to announced results. This mirrors the capital gain on the sale of L'Oréal shares in 2021. Free cash flow was CHF 6.6 billion, as working capital increased temporarily in the context of supply chain constraints and capital expenditure remained above historic trendlines. The company's board of directors has suggested a CHF 2.95 dividend per share with a 15 cents increase. If approved, this would make it the 28th consecutive year in which Nestlé increases annual dividend. This would also mark CHF 18.2bn being returned to shareholders in 2022, through a mixture of dividends and share buyback program. During 2022, the company has confirmed a longstanding nutrition strategy, with Good for You, Good for the Planet at its heart to strengthen its industry-leading responsible marketing practices, said Nestle's CEO Mark Schneider. Schneider added this the strategy aims to provide transparency on the nutritional value of Nestlé's global portfolio, adding "at the same time, we also advanced the implementation of our climate roadmap." Nestlé expects 2023 a robust organic growth, with a focus on restoring its gross margin, stepping up marketing investments and increasing free cash flow. Download
