Nestlé Reports Full Year 2014 Financial Results

Feb. 20, 2015

In 2014 Nestlé’s organic growth was 4.5%, composed of 2.3% real internal growth and 2.2% pricing. Sales were CHF 91.6 billion, down 0.6%, impacted by negative foreign exchange of -5.5%. Acquisitions, net of divestitures, added 0.4% to sales.

  • The Group’s trading operating profit was CHF 14.0 billion, representing a margin of 15.3%, up 10 basis points, and up 30 basis points in constant currencies.
  • The cost of goods sold fell by 30 basis points as a percentage of sales, driven by product mix and pricing actions and savings created by Nestlé Continuous Excellence which more than offset increases in raw material costs.
  • Distribution costs were up by 10 basis points.
  • Total marketing and administration expenses rose by 10 basis points as we increased consumer facing marketing support for our brands.
  • Net profit rose CHF 4.4 billion to CHF 14.5 billion. The increase also reflects the profit realized on the disposal of part of the stake in L’Oréal and the revaluation gain on the 50% of Galderma already held when the Group brought its ownership from 50% to 100%.Reported earnings per share were CHF 4.54, up 44.6%.
  • Underlying earnings per share in constant currencies were up 4.4%.
  • The Group’s operating cash flow remained strong at CHF 14.7 billion.

Nestlé Waters

Sales of CHF 7.4 billion, 5.4% organic growth, 6.3% real internal growth; 9.7% trading operating profit margin, +50 basis points

  • Nestlé Waters delivered solid broad-based organic and real internal growth in all three geographies. Nestlé Pure Life continued to be a growth engine, particularly in the emerging markets but also in North America and the United Kingdom. Perrier and S.Pellegrino, our premium international brands, continued to demonstrate our ability to create value in the category. Complementing these performances, strong local brands also delivered good growth, especially Buxton in the United Kingdom, Erikli in Turkey, La Vie in Vietnam andYunnan Shan Quan in China.
  • The trading operating profit margin was 9.7%, up 50 basis points, mainly driven by solid growth on the back of contained structural costs. Lower input costs were partly offset by higher distribution costs.

Other businesses

  • The growth for Nestlé Professional was driven by the emerging markets, particularly China, the Philippines, the Indochina region, Middle East and Russia whilst Western Europe and North America continued to face challenges in the out-of-home environment. The strategic growth drivers; beverage solutions and desserts solutions, continued to perform well.
  • Nespresso grew in all regions, further expanding its presence around the world. The focus on quality and investments in products, machines and services were the base for its strong results. Nespresso continued to drive the expansion of the global single-serve coffee market with the successful launch of the VertuoLine system in North America creating a new premium coffee segment. The roll-out of the innovative automated retail boutique, the Nespresso Cube, is pioneering a new way of shopping and a personalized service for consumers. View full report here.


Nestlé Professional
Nestle Professional
Candy, gum, fruit/gummy snacks

Nestlé Professional

May 30, 2007
Brands: Coffee-Mate, NESTEA®, Nescafe, Hot Pockets, Lean Pockets, Stouffers