Feb 22, 2021
Nestlé has announced that it will emphasize on its growth with acquisitions this year while being selective on the additions to its business. Nestlé chief executive Mark Schneider said that they do believe that in 2021 as well, there will be some good additions to the business.
“We will put more emphasis on growth and acquisitions, not just organic growth, but also absolute growth,” Schneider. He added that divestitures may also happen.
Earlier this week, the company agreed to divest its regional spring water brands, purified water business and beverage delivery service in the US and Canada to One Rock Capital Partners in partnership with Metropoulos & Co. for $4.3bn.
This transaction is expected to close following the completion of customary closing conditions.
For fiscal 2020, the Swiss food group’s net profits declined 3% to Sfr12.2bn ($13.65bn). Its total sales fell 8.9% to Sfr84.34bn (94.34bn) from Sfr 92.57bn ($103.54bn) with a decline seen in all regions. Foreign exchange reduced sales by 7.9%.
Stripping out acquisitions, divestitures and currency fluctuations, Nestlé’s full-year organic sales grew 3.6% last year, more than its own guidance for around 3%. This was the highest level in the last five years. Real internal growth (RIG) was 3.2% and pricing edged up 0.4%.
Organic growth in developed markets was strong at 3.8%. Growth in emerging markets improved during the year and reached 3.4%.