VEVEY (dpa-AFX) - Swiss food and beverage giant Nestle SA (NSRGY.PK, NSTR.L) reported Thursday that its fiscal 2022 net profit decreased 45.2 percent from last year to 9.3 billion Swiss francs. Earnings per share decreased 43.5 percent year-over-year to 3.42 francs.
The drop in profit reflected prior year's gain on disposal of L'Oréal shares.
Underlying earnings per share increased 8.4 percent on a reported basis to 4.80 francs. The increase was mainly the result of strong organic growth.
Underlying trading operating profit grew 6.5 percent year-over-year to 16.1 billion francs.
Total reported sales increased 8.4 percent to 94.42 billion francs from prior year's 87.09 billion francs.
Further, at the Annual General Meeting on April 20, the Board of Directors will propose a dividend of 2.95 francs per share, an increase of 15 centimes.
The Board will also propose to reduce the share capital by 80 million shares from CHF 275 million to CHF 267 million through the cancellation of shares purchased, as part of the share buyback program.
Looking ahead for fiscal 2023, Nestle expects underlying earnings per share in constant currency to increase between 6 percent and 10 percent.
Organic sales growth is expected between 6 percent and 8 percent and underlying trading operating profit margin between 17.0 percent and 17.5 percent.
Further, the company confirmed its 2025 targets, expecting sustainable mid single-digit organic sales growth and a return to an underlying trading operating profit margin range of 17.5 percent to 18.5 percent by 2025. The company also projects annual underlying earnings per share growth to be in the range of 6 percent to 10 percent in constant currency.
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