Nestle posts higher 2021 profit, sales as prices hiked

ZURICH: Swiss food giant Nestle’s net profit and sales rose in 2021 as it sold shares in cosmetic company l’Oreal and hiked prices amid soaring global inflation, group results showed Thursday.

Businesses have faced supply chain disruptions and decades-high inflation as the global economy recovers from the Covid pandemic and energy prices surge.

Nestle, the maker of everything from coffee to pet food and plant-based meat, said its net profit bounced by 38.2 per cent to 16.9 billion Swiss francs ($18.3 billion, 16.1 billion euros) last year.

Total sales rose 3.3 per cent to 87.1 billion francs as restaurant sales improved and price hikes accelerated in the last quarter under inflationary pressure.

Its organic growth, which excludes the effects of acquisitions or divestments to focus on a company’s core operations, reached 7.5 per cent, with coffee the largest contributor.

Pet products also performed well, with double-digit growth for Purina PetCare.

Sales in vegetarian and plant-based food, an area where Nestle and other food companies have been investing, also grew at a double-digit rate to reach 800 million francs.

“In 2021, we remained focused on executing our long-term strategy and stepping up growth investments, while at the same time navigating global supply chain challenges,” Nestle chief executive Mark Schneider said in a statement.

“We limited the impact of exceptional cost inflation through diligent cost management and responsible pricing,” he said.