Nestlé, the Swiss-based food giant, has reported higher than expected profits due to price increases. The company saw a 15.8% increase in net profit for the year to the end of December.
The company also reported 7.4% of organic growth with strong performances by its food and beverage division, which saw a 7.1% increase in organic growth, and pharmaceuticals, which includes eyecare company Alcon, grew by 7.4%.
It says that growth in the confectionery division was driven by strong sales of KitKat in Latin American and Asia and the trends towards premium dark chocolate in countries including Italy. Sales of its prepared foods division were also strong with the Maggi brand, Lean Cuisine and Buitoni performing well in North America.
The petcare division reported 7% organic growth driven by strategic brands, new product launches and improvements to its ranges. It says the “super premium” and high premium” ranges, including One and Pro Plan, performed particularly well and higher prices offset the higher cost of raw ingredients.
The company says it is confident that “the momentum built up over time” will be maintained in the future despite the increase cost of raw ingredients. It says: “The company’s strategic re-orientation and the related structural adjustments have largely been completed and the group’s leadership position in nutrition, health and wellness is now deeply rooted.”