Nestlé announces its full year results for 2013. The company saw 4.6 percent in organic growth and a trading operating profit margin up 20 basis points, up 40 basis points in constant currencies.
Paul Bulcke, Nestlé CEO, said in a prepared statement: “The macro-environment in 2013 was one of soft growth, minimal in the developed world and below recent levels in the emerging markets. Our response was to increase brand support, accelerate innovation, and to ensure our pricing was sensitive to consumer needs. This gave impetus to our real internal growth and, together with efficiencies and structural cost savings, contributed to our margin improvement and strong cash flow. We also intensified our portfolio management which resulted in some charges in 2013 but ensures we are putting our people and resources behind the best opportunities.
“Our long-term strategic direction is to be the leader in nutrition, health and wellness. We reinforced this strategy with the creation of Nestlé Health Science, and we are extending it now to the field of specialized medical skin treatments by setting up Nestlé Skin Health S.A.
“Last year was challenging and 2014 will likely be the same. We will continue to be disciplined in driving our performance in line with the Nestlé Model of profitable growth and resource efficiency. I therefore expect our 2014 performance to be similar to last year and again weighted to the second half, outperforming the market, with growth around 5 percent and improvements in margins, underlying earnings per share in constant currencies and capital efficiency.” Full report.