Letter to our shareholders

For over 150 years, Nestlé has built its success on a profound understanding of nutrition. That success is based on a continuous, compelling strategy that leads to sustainable value creation. It is also based on the ability to change and adapt. 2017 was no exception.


Through enhancing quality of life and contributing to a healthier future, we aim to deliver sustainable, industry‑leading financial performance and earn trust. For over 150 years, we have built a successful business through understanding and anticipating consumer needs, and adapting to succeed in an evolving marketplace. Based on a compelling strategy, our company delivers dependable value over the short term and long term.

Innovating for a changing world

At Nestlé, continuous innovation is part of our DNA. Our success is founded on over 150 years of anticipating trends and understanding consumers’ needs. This approach remains fundamental to our strategy. Nestlé has the most advanced science and innovation network in the food and beverages industry. This enables us to translate our knowledge into highly‑relevant products and services for our consumers.

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. We have more than 2000 brands, ranging from global icons like Nescafé and Nespresso to local favourites like Ninho.

Financial review

Our 2017 organic sales growth was within the guided range but below our expectations. Our cost reduction initiatives delivered margin improvement ahead of expectations.

CHF 89.8 billion



Organic growth*


Real internal growth*

CHF 14.7 billion

Underlying trading operating profit*


Underlying trading operating profit margin*

Constant currency

+50 basis points

Underlying trading operating profit margin*

Constant currency

CHF 13.2 billion

Trading operating profit*


Trading operating profit margin*

-50 basis points

Trading operating profit margin*

Constant currency

CHF 2.32

Earnings per share


Earnings per share


Underlying earnings per share*

Constant currency

CHF 13.5 billion

Operating cash flow

75.4% of net financial debt*

CHF 8.5 billion

Free cash flow*

CHF 2.35

Proposed dividend


Proposed dividend increase

* Financial performance measures not defined by IFRS.

Sales, employees and factories by geographic area

Corporate Governance

Our Board of Directors is highly engaged in our long‑term, sustainable value creation based on strong principles of governance and an appropriate tone from the top. It ensures the long‑term health of our company so it can continue to deliver dependable value over time.

Creating Shared Value

We believe that our company will be successful in the long term by creating value for both our shareholders and for society as a whole. This approach, called Creating Shared Value, is the principle for how we do business. It enables us to bring our purpose to life: enhancing quality of life and contributing to a healthier future.


The Annual Report contains our Annual Review, the Corporate Governance & Compensation Reports, our Financial Statements and the 2017 Creating Shared Value achievements.