(Boursier.com) — In the first half of 2022, the organic growth of Nestle rose to 8.1%, with real internal growth (RIG) of 1.7% and a price effect of 6.5%. Growth was broad across most geographies and categories, with an increased price effect and solid real internal growth.
Total reported sales increased by 9.2% to CHF 45.6 billion (6M-2021: CHF 41.8 billion). Net acquisitions had a positive impact of 1.0%. Exchange rates increased sales by 0.1%.
Underlying trading operating profit increased by 6% to CHF 7.7 billion. The recurring trading operating profit margin reached 16.9%, down 50 basis points. The current operating margin fell by 200 basis points to 14.7% mainly due to exceptional items.
Net profit decreased by -11.7% to CHF 5.2 billion. Earnings per share decreased by -9.5% to CHF 1.92 on a reported basis.
Recurring earnings per share increased by +8.1% at constant exchange rates and by +7.3% on a reported basis at CHF 2.33.
Cash generated from operations decreased from CHF 5.8 billion to CHF 5.7 billion. Free cash flow was CHF 1.5 billion, reflecting temporarily higher investments and working capital requirements due to supply constraints and strong consumer demand.
Net debt increased to CHF 48.5 billion as of June 30, 2022 from CHF 32.9 billion as of December 31, 2021. This increase largely reflects the payment of dividends of CHF 7.6 billion and the repurchase of shares for CHF 6.7 billion.
In Q2, Nestlé Health Science agreed to acquire Puravida in Brazil and The Better Health Company in New Zealand.
2022 Annual Forecast Update
“We expect organic sales growth between 7% and 8%. The recurring trading operating profit margin should now be around 17%. increase”, indicates the Swiss group.