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Annual Report 2018

The Annual Report contains Nestlé’s Annual Review (pdf, 15 Mb) including Creating Shared Value highlights, the Corporate Governance & Compensation Reports (pdf, 2 Mb) and the Financial Statements (pdf, 1 Mb).

Letter to our shareholders

In a rapidly-changing environment, the key to our success has been our ability to balance continuity with change. It has required discipline and decisive actions to build sustainable value for the long term. We continue on our Nutrition, Health and Wellness journey, while we stay true to our purpose and values. We change by adapting our portfolio to meet evolving consumer demands, pushing the boundaries of science, accelerating innovation, as well as driving greater agility and efficiencies.

Pursuing our value-creating strategy


As the 'Good Food, Good Life' company, we enhance quality of life and contribute to a healthier future. Winning with consumers is the source of our sustainable financial performance and our way to earning trust and maintain our market leadership. Based on a compelling Nutrition, Health and Wellness strategy, our company delivers sustainable value over the short term and the long term.

Our performance

We are pleased with our progress in 2018. All financial performance metrics improved significantly and we saw revived growth in our two largest markets, the United States and China, as well as in our infant nutrition business.


CHF 91.4 billion

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Organic growth*
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Real internal growth*

CHF 15.5 billion

Underlying trading operating profit*


Underlying trading operating profit margin* Constant currency

+50 basis points

Underlying trading operating profit margin* Constant currency
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CHF 13.8 billion

Trading operating profit*
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Trading operating profit margin*
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+30 basis points

Trading operating profit margin* Constant currency

CHF 3.36

Earnings per share


Earnings per share


Underlying earnings per share* Constant currency
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CHF 15.4 billion

Operating cash flow 50.8% of net financial debt*
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CHF 10.8 billion

Free cash flow*
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CHF 2.45

Proposed dividend
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Proposed dividend increase
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* Financial performance measures not defined by IFRS.


Sales, employees and factories by geographic area

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Sales: CHF 41.0 billion
Employees: 33.9%
Factories: 159

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Europe, Middle East, North Africa

Sales: CHF 26.9 billion
Employees: 34.1%
Factories: 146

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Asia, Oceania and sub-Saharan Africa

Sales: CHF 23.5 billion
Employees: 32.0%
Factories: 108


Innovating for a changing world


At Nestlé, continuous innovation is part of our DNA. It is a cornerstone of our success and key to our strategy. For over 150 years, we have built unique competitive advantages. We have unmatched expertise in understanding the relationship between nutrition and health. Our ability to identify local and global trends and translate these into meaningful innovations that meet consumer demand is what drives our growth.

Connecting through our brands

Through our products and brands, we connect with people and their pets millions of times a day and throughout their lives. Our brands are our vehicles for creating experiences beyond products.

Corporate Governance

Our Board of Directors is highly engaged and dedicated to creating long term, sustainable value based on strong principles of governance and an appropriate tone from the top. Our corporate governance framework is carefully constructed, and continually evaluated and updated, to ensure that it promotes accountability and supports our strategy to foster long term value and sustainable growth for the benefit of all shareholders.

Creating Shared Value

Creating Shared Value is fundamental to how we do business at Nestlé. We believe that our company will be successful in the long term by creating value for both our shareholders and for society. Our activities and products should make a positive difference to society while contributing to Nestlé’s ongoing success.


The Annual Report contains our Annual Review including Creating Shared Value highlights, the Corporate Governance & Compensation Reports and our Financial Statements.