Nestle Announces Financial Results for 2023

Nestle Announces 2023 Financial Results. The company's sales fell 1.5 percent last year to CHF 93 billion. Analysts had expected CHF 93.68 billion. The company's net profit reached CHF 11.2 billion (USD 12.8 billion), up 20 percent from the previous year due to lower valuations of tangible assets and tax effects. Nestle's organic sales, excluding currency effects and acquisitions, rose 7.2 percent last year. Analysts had expected organic growth of 7.4 percent. Following the balance sheet announcement, Nestle's shares fell more than 3.2 percent in morning trading. Nestle, which plans to increase its dividend payment from CHF 2.95 per share to CHF 3, also announced that it distributed CHF 12.8 billion to shareholders last year through a combination of dividends and share buybacks. The packaged food sector has drawn attention for charging consumers higher prices for more than two years, citing high input costs that began with the COVID-19 pandemic and intensified with the Ukraine-Russia war. High prices have damaged global food supply chains, leading to increased spending on food. Meanwhile, Nestle and Danone, one of the world's largest food companies, have announced they will slow price increases this year following two years of hikes that prompted consumers to seek cheaper alternatives for staple food products such as yogurt and coffee. Source