Nestlé Group 2016
In millions of CHF (except for data per share) 2016
Results
Sales 89 469
Trading operating profit 13 693
as % of sales 15.3%
Profit for the period attributable to shareholders of the parent (Net profit) 8 531
as % of sales 9.5%
Balance sheet and Cash flow statement
Equity attributable to shareholders of the parent 64 590
Net financial debt 13 913
Ratio of net financial debt to equity (gearing) 21.5%
Operating cash flow 15 582
as % of net financial debt 112.0%
Free cash flow (a) 10 108
Capital expenditure 4 010
as % of sales 4.5%
Key figures (consolidated)
Data per share
Weighted average number of shares outstanding (in millions of units) 3 091
Basic earnings per share CHF 2.76
Underlying earnings per share (b) CHF 3.40
Dividend as proposed by the Board of Directors of Nestlé S.A. CHF 2.30
Stock exchange prices (high/low) CHF 80.05/67.00
Yield (c) % 2.9/3.4
Market capitalisation, end December 226 310
(a) Operating cash flow less capital expenditure, expenditure on intangible assets, investments (net of divestments) in associates and joint ventures, and other investing cash flows.
(b) Profit per share for the year attributable to shareholders of the parent before impairments, restructuring costs, results on disposals and significant one-off items. The tax impact from the adjusted items is also adjusted for.
(c) Calculated on the basis of the dividend for the year concerned, which is paid in the following year, and on high/low stock prices.
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Analysis of sales, trading operating profit and organic growth (OG)
By operating segment
In millions of CHF Sales
Trading operating
profit OG
Zone AMS 26 356 5 074 +4.2%
Zone EMENA 16 249 2 712 +2.0%
Zone AOA 14 493 2 756 +3.2%
Nestlé Waters 7 926 946 +4.5%
Nestlé Nutrition 10 326 2 342 +1.5%
Other businesses (a) 14 119 2 144 +3.7%
Unallocated items (b) (2 281)
Total Group 89 469 13 693 +3.2%
In millions of CHF Sales
Trading operating
profit OG
Powdered and Liquid Beverages 19 792 4 111 +4.6%
Water 7 414 906 +5.0%
Milk products and Ice cream 14 331 2 640 +1.6%
Nutrition and Health Science 15 038 2 775 +2.0%
Prepared dishes and cooking aids 12 148 1 817 +2.7%
Confectionery 8 679 1 190 +1.8%
PetCare 12 067 2 535 +5.3%
Unallocated items (b) (2 281)
Total Group 89 469 13 693 +3.2%
(a) Mainly Nestlé Professional, Nespresso, Nestlé Health Science and Nestlé Skin Health.(b) Mainly corporate expenses as well as research and development costs.
By product
Contact
www.nestle.com
MediaNestlé S.A.Corporate Media RelationsAvenue Nestlé 55 CH-1800 Vevey (Switzerland)Tel. +41 (0)21 924 22 00Fax +41 (0)21 922 63 [email protected]
InvestorsNestlé S.A.Investor RelationsAvenue Nestlé 55 CH-1800 Vevey (Switzerland)Tel. +41 (0)21 924 35 09Fax +41 (0)21 924 48 [email protected]
ShareholdersShare register: registrations, transfers, dividends, etc.Nestlé S.A. Share Transfer OfficeZugerstrasse 8 CH-6330 Cham (Switzerland)Tel. +41 (0)41 785 20 20Fax +41 (0)41 785 20 [email protected]
Company profile
Nestlé has factories in 86 countries and sales in 191 countries around the world and 328 000 employees.
Employees by geographic area
Factories by geographic area
AMS 33.2% 158
EMENA(a) 33.2% 151
AOA 33.6% 109
(a) 10 046 employees in Switzerland in 2016.
The Nestlé Story – all the way to Nutrition, Health and Wellness
1866 Foundation of Anglo-Swiss Condensed Milk Co.
1867 Henri Nestlé’s Infant cereal developed
1905 Nestlé and Anglo-Swiss Condensed Milk Co. (new name after merger)
1929 Merger with Peter, Cailler, Kohler Chocolats Suisses S.A.
1934 Launch of Milo
1938 Launch of Nescafé
1947 Nestlé Alimentana S.A. (new name after merger with Maggi)
1948 Launch of Nestea and Nesquik
1969 Vittel (initially equity interest only)
1971 Merger with Ursina-Franck
1973 Stouffer (with Lean Cuisine)
1974 L’Oréal (associate)
1977 Nestlé S.A. (new name), Alcon (disposal in 2010)
1981 Galderma (joint venture with L’Oréal – full acquisition in 2014)
1985 Carnation (with Coffee-mate and Friskies)
1986 Creation of Nestlé Nespresso S.A. and Herta
1988 Buitoni-Perugina and Rowntree (with KitKat)
1990 Cereal Partners Worldwide (joint venture with General Mills)
1991 Beverage Partners Worldwide (joint venture with Coca-Cola)
1992 Perrier (with Poland Spring)
1993 Creation of Nestlé Sources Internationales (2002: Nestlé Waters)
1997 Creation of Nutrition Strategic Business Division (2006: Nestlé Nutrition)
1998 Sanpellegrino and Spillers Petfoods, Launch of Nestlé Pure Life
2000 PowerBar (disposal in 2014)
2001 Ralston Purina
2002 Schöller and Chef America
Dairy Partners Americas (joint venture with Fonterra – full acquisition in 2014)
Laboratoires innéov (joint venture with L’Oréal – liquidated in 2015)
2003 Mövenpick and Dreyer’s
2005 Wagner
2006 Creation of FoodServices Strategic Business Division (2009: Nestlé Professional)
Lactalis Nestlé Produits Frais (associate)
Jenny Craig (disposal in 2013), Uncle Tobys and Delta Ice Cream
2007 Novartis Medical Nutrition, Gerber and Henniez
2008 Ruzanna
2010 Kraft Food’s frozen pizza, Waggin’Train, Malher, Technocom and Vitaflo
2011 Creation of Nestlé Health Science and Nestlé Institute of Health Sciences
Prometheus, Yinlu and Hsu Fu Chi (partnerships)
2012 Wyeth Nutrition
2013 Pamlab (disposal in 2016)
2014 Creation of Nestlé Skin Health
2015 Merrick PetCare (acquisition), Davigel (disposal)
2016 The Proactiv Company (acquisition), Froneri (joint venture with R&R Ice Cream)
The strategyNutrition plays a profound role in everyone’s life. Our strategy focuses on delivering distinct benefits to people through the food and beverages, products and services we provide. Over 150 years we have built a successful business by understanding and anticipating the needs of society, and continuously adapting ourselves to seize the opportunities presented to us.
The highlightsEver since Nestlé was founded we have provided quality products and services that help shape a better world. Henri Nestlé created an infant cereal that saved the life of a child. We share his belief that through innovation we can enable healthier and happier lives. We share his passion for creating the tastiest and healthiest products, building, sharing and applying our nutritional knowledge, enhancing quality of life and contributing to a healthier future.
Nestlé.Enhancing quality of life and contributing to a healthier future.
Com
plia
nce
– Su
stai
nabilit
y Creating Shared Valu
e
Nestlé culture, values and principles
Nutrition, Health and Wellness
Emerging markets and
Popularly Positioned Products
Out-of-home consumption
Premiumisation
Unmatchedproduct
and brandportfolio
Unmatched research and development
capabilityUnmatched geographic
presence
People, culture, values
and attitude
Consumerengagement
Operationalefficiency
Whenever,wherever, however
Innovation and renovation
Operational pillars
Growth drivers
Competitiveadvantages
Our objective is to be the leader in Nutrition, Health and Wellness, and the industry reference for financial performance, trusted by all stakeholders