27 February 2001

Nestlé Reports Record Profits

The Nestlé Group reports profits and cash flow at an all time high and an increase in sales of 9.1% The figures comparing the year 2000 over 1999 also show net profit up by 22% and an internal growth rate of 4.4%. The report says: "The significant improvements in profits result from a broad-based effort to continually improve the performance throughout the Group. All areas and activities were involved and, in differing degrees, contributed to growth and improved results". "Portfolio streamlining, efficiency improvements in purchasing, supply chain management and the on-going industrial restructuring led to a general increase in operational efficiency reflected in the higher margins and profits. At the same time, significant investments were made in R&D, manufacturing and marketing to ensure future top-line growth". Nestlé expect this growth to continue, they say: "Barring major unforeseen events, Nestlé will close 2001 with higher sales and profits than in 2000". At a meeting on 22 February, the Board of Directors decided to propose an increase in dividends on shares of 27.9%. Copyright 2001 in this form Steve O'Malley (UKPets). This article may be reproduced with permission of the author and correct attribution to the source.