Nestle S.A.: reports half-year results for 2022

Vevey / CH. (nsa) Swiss Nestle S.A. reported half-year results for 2022 (H1-2022) and updated its full-year 2022 outlook. The company now expects organic sales growth between seven and eight percent. The underlying trading operating profit margin is now expected around 17.0 percent. Underlying earnings per share in constant currency and capital efficiency are expected to increase. First half 2022 highlights:

  • Organic growth reached 8.1 percent, with real internal growth (RIG) of 1.7 percent and pricing of 6.5 percent. Growth was broad-based across most geographies and categories, with increased pricing and resilient real internal growth (RIG).
  • Total reported sales increased by 9.2 percent to CHF 45.6 billion (6M-2021: CHF 41.8 billion). Net acquisitions had a positive impact of 1.0 percent. Foreign exchange increased sales by 0.1 percent.
  • The underlying trading operating profit (UTOP) margin was 16.9 percent, decreasing by 50 basis points. The trading operating profit (TOP) margin decreased by 200 basis points to 14.7 percent, mainly due to one-off items.
  • Underlying earnings per share increased by 8.1 percent in constant currency and increased by 7.3 percent on a reported basis to CHF 2.33. Earnings per share decreased by 9.5 percent to CHF 1.92 on a reported basis.
  • Free cash flow was CHF 1.5 billion, as working capital and capital expenditure increased temporarily in the context of supply chain constraints and high volume demand.
  • Continued portfolio management progress. In the second quarter, Nestle Health Science agreed to acquire Puravida in Brazil and The Better Health Company in New Zealand.

CEO Mark Schneider commented: «In the first half of the year, we delivered strong organic growth and a significant increase in underlying earnings per share. Our local teams implemented price increases in a responsible manner. Volume and product mix were resilient, based on our strong brands, differentiated offerings and leading market positions. We limited the impact of unprecedented inflationary pressures and supply chain constraints on our margin development through disciplined cost control and operational efficiencies. At the same time, investments behind capital expenditure, digitalization and sustainability increased significantly.» For additional information please read the Company’s PDF file below (339 KB):