Nestlé has reported its slowest sales growth in three years, blaming weak demand in Europe and slowing demand in emerging markets.
Despite the slowdown in sales, net profit grew by 12% to CHF 10.6 bn (from last year’s 9.5 bn). However, on an organic basis (before currency effects and acquisitions), revenue grew by just 5.9%, with growth of 1.8% in Europe, 5.2% in the Americas and 8% in Zone AOA.
Nestlé announced an increase in the dividend payout to shareholders this year.
It remains to be seen whether workers will be similarly rewarded with pay increases this year.
Click here for the Nestlé press release.