Creating value for shareholders

Our global food and beverages portfolio reflects our commitment to Nutrition, Health and Wellness. Our portfolio is strong and diversified, with leading positions in many of the fastest growing categories in the industry. To ensure continued long-term growth, we are investing in key categories and actively managing the portfolio to ensure we stay ahead of consumer trends.

Our consumers are at the heart of everything we do to drive growth, ensuring it benefits both our shareholders and society. Through our purpose - enhancing quality of life and contributing to a healthier future – we aim to deliver sustainable, industry-leading financial performance and earn trust.

Shareholder returns

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Well positioned to grow revenues

Nestlé has many enduring strengths that keep us at the top of our industry. We have great brands that people love. We have a unique global footprint, a size and scale that we use to our advantage, and the capacity to invest for the long term.

The key to our long-term success continues to be understanding and serving the consumer. By identifying consumer trends early and acting quickly to capture them, we remain at the forefront of the fast-moving consumer goods industry.

We believe that long-term value creation is the result of both growth and operating efficiency. We achieve sustainable top-line growth by investing selectively in high-growth categories and geographies.

  • Nestlé acquisitions in 2017

    We actively manage our portfolio through focused and prudent M&A: we acquire businesses in rapidly growing markets; we address underperformers through divestment.

    In 2017, we made a number of changes to reposition the portfolio in line with our Nutrition, Health and Wellness strategy. These include taking a majority stake in Blue Bottle Coffee and acquiring Chameleon in the coffee category, as well as Sweet Earth vegetarian frozen foods in the food category. We also announced the acquisition of Atrium Innovations in the consumer healthcare category (to be completed in 2018).

  • significant growth opportunities in categories coffee, petcare, bottled water, infant nutrition, consumer healthcare

    Nestlé is unique in the food and beverages industry. Our products are available in 189 markets worldwide. Our range of iconic global and local brands are some of the most loved, valuable and recognisable in the world.

    We see significant growth opportunities in categories: coffee, petcare, bottled water, infant nutrition and consumer healthcare.

    Nestlé is leading (number one or two) in 8 out of the 10 fastest growing categories in F&B *

    * Source: Euromonitor data 2017, categories > USD 7bn sales

  • sales contribution of emerging markets

    Strong sales contribution from emerging markets (as percentage of Group sales)

  • Average organic revenue growth FY2014 – FY2017

    Organic revenue growth FY2014 – FY2017 (average):

    • Nestlé: 3.6%
    • Peers: 1.8%

    Peers: Unilever, Danone, Kraft Heinz, Mondelēz, General Mills, Kellogg, Hershey, Coca-Cola, PepsiCo

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Committed to steady, consistent profitable growth

Disciplined cost management

Nestlé is committed to delivering consistent, profitable growth over the long-term. We have begun several projects to reduce costs across manufacturing, procurement and our administration functions. We have committed to increasing our underlying trading operating profit margin from 16.0% in 2016 to between 17.5 and 18.5% by 2020. We are on track to meet our 2020 target of 200bps of structural cost savings.


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Board and management with a proven track record of success

Our board and management have the right depth of experience and expertise relevant to execute the company’s strategy, with a strong track record of creating value for shareholders. Find out more

World class board and management

  • Board facilitated the transition to a new external CEO
  • Chairman with over 35 years' experience in the FMCG and F&B industry
  • Approved CHF 20 billion repurchase programme
  • 7 new independent directors in the past three years (including 3 nominees to 2018 AGM)
  • Hosts 5 to 6 annual Chairman’s Roundtables in different locations around the world
  • Agreed to sell its U.S. confectionery business to Ferrero for USD 2.8 billion to streamline portfolio

Proven leadership

  • CEO with track record of creating shareholder value is driving next stage of company’s evolution
  • Management team with proven track record of operational excellence and a track record of leading change

Recognised leader in corporate governance and sustainability

  • Highest sustainability score, food products industry, Dow Jones Sustainability Index, 2017
  • EHS Sustainability Innovation Award, Food & Beverage, Verdantix Summit, 2017
  • 7-year member Corporate Sustainability FTSE4Good, 2011-2017
  • Best Corporate Governance Switzerland, Capital Finance International, 2016
  • Best Corporate Governance, Food & Beverage, Ethical Boardroom Magazine, 2018
  • Industry leader for Codes of Business Conduct, Dow Jones Sustainability Index, 2016

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Corporate, social and environmental responsibility

Creating Shared Value is the fundamental principle of how Nestlé does business. It is our way of creating value for both shareholders and for society at the same time.

We understand that the prospects of our business are linked to the health and resilience of the society and world in which we operate. Our priorities are those areas with the greatest connection between Nestlé’s business and society.

Our 41 public commitments bring to life our purpose of enhancing quality of life and contributing to a healthier future. These commitments contribute to the UN’s Sustainable Development Goals. The details of our progress against them are published yearly in the Nestlé in Society Creating Shared Value report.

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