Nestlé wants to continue growing around 5 % in sales annually until 2025, and even more in profits. The FMCG giant hopes to achieve this with the help of digitisation and its Health Science division.
“Continue to perform consistently”
Nestlé revealed its 2025 targets to investors in Barcelona today. For the coming years, the manufacturer is counting on average single-digit organic sales growth, while the company is also aiming for a return to 17.5 to 18.5 % underlying operating profit margin by 2025. Earnings per share should grow 6 to 10 % annually at constant exchange rates.
Innovation, digitisation and brand building should enable that growth, while margin development will be supported through efficiency programmes. Nestlé will continue to focus on food and beverages in the coming years, but sees additional growth opportunities in nutritional health products it is developing under the Nestlé Health Science banner.
Revenue forecast up slightly more
Nestlé is also looking forward to acquisitions, albeit “disciplined”: it will look for strategic and cultural fit, as well as attractive financial returns. For the sake of the latter, however, the group is first halting Palforzia, a peanut allergy treatment. Adoption by patients and health professionals has been slower than expected. In the future, Nestlé Health Science will therefore focus more strongly on Consumer Care and Medical Nutrition.
For 2022, Nestlé now assumes organic sales growth between 8 and 8.5 %. This is slightly higher than previously anticipated. Regarding earnings per share, the group remains rather vague, but the operating margin is expected to be around 17.0 %.
