Nestlé Posts Gain In Full-Year Profit

reported a rise in its profit for the 12 months to December 31. The company's net profit for the year climbed 45% to 14.5 billion francs. Reported earnings per share climbed 44.6% to 4.54 francs. Underlying EPS in constant currencies gained 4.4% in the period. Nestlé's revenue for the year slipped 0.6% y/y to 91.6 billion Swiss francs (97.1 billion). However, organic revenue grew 4.5% in the period. The company's sales in emerging markets gained 8.9%, versus a 9.3% growth in 2013. Sales in developed markets gained 1.1% during the year. Distribution costs rose 10 basis points, while total marketing and administration expenses climbed 10 basis points. The company's board proposed a rise in the dividend to CHF 2.20 per share. Paul Bulcke, Nestlé CEO said, "These are strong results, building on the good growth of past years and delivered in a soft trading environment. They demonstrate the intrinsic strengths of Nestlé: the commitment of our people, our global footprint, the strength of our portfolio and the quality of our innovation. While delivering in the short term, we remain focused on our business long term, strengthening the foundations of future growth. We expect 2015 to be similar to 2014 and we aim to achieve organic growth of around 5% with improvements in margins, underlying earnings per share in constant currencies and capital efficiency." Nestle shares fell 1.01% to close at $75.49 yesterday.