By Max Clarke
Nestle posted an 'extraordinary' CHF 34.3 (£22.2) billion profit for 2010, with 6.2% organic growth and total sales across the globe of CHF 104 billion.
The international food giant served one billion consumers across the world with a vast range of familiar products and brands.
The Americas remained Nestle's most active market, accounting for CHF 34 billion in sales, though growth in the region has slowed to 3%. Europe, Nestle's second market generated CHF 21.6 billion in sales, while Asia, Africa and Oceania together accounted for CHF 17.4 (£11.3) sales, with a sizeable growth of 8.2% .
Paul Bulcke, Nestlé CEO said:
“In 2010, we delivered another year of strong top and bottom line growth, outperforming the market. We increased investment in our brands, our operations and our people. We continued to drive efficiency and effectiveness in both developed and emerging markets while at the same time accelerating innovation, serving well over a billion consumers a day across the world.
We are starting 2011 with continued momentum, well placed to face uncertainties ahead, including volatile raw material prices. We are therefore confident of achieving the Nestlé Model in 2011: organic growth between 5% and 6% and an EBIT margin improvement in constant currencies.”
Other highlights for 2010 included:
Sale of our remaining stake in Alcon to Novartis for USD 28.3 billion;
Creation of Nestlé Health Science S.A. and the Nestlé Institute of Health Sciences to pioneer a new industry between food and pharma;
Acquisitions of more than CHF 5 billion including Kraft’s frozen pizza business, Vitaflo (clinical nutrition products) and Waggin’ Train (dog snacks);
Investment of CHF 4.6 (£3) billion in operations across the world with strong emphasis on emerging markets such as India, Indonesia, the Philippines, the Equatorial African Region and Poland;
Opening of a R&D Centre for biscuits in Chile and groundbreaking of a R&D Centre for PPPs in India;
Following the announcement of the Nestlé Cocoa Plan in 2009, launch of the Nescafé Plan, announcing investments of CHF 500 million over ten years in coffee projects and doubling of direct coffee purchases, thereby strengthening our commitment to rural development;
Completion of our CHF 25 billion three-year share buy-back programme and launch of a new CHF 10 billion programme;
Change of our sales recognition policy as from 2011.