Written by Brenda Nakalema

Nestle’ Revenue Beat Expectations. Stock is still down.

Swiss group Nestle’ (ticker: NESN. Switzerland) announced net profits and sales figures that were above expectations for 2021. However, the …

Swiss group Nestle’ (ticker: NESN. Switzerland) announced net profits and sales figures that were above expectations for 2021. However, the company added that the rising inflation rates might hit its margins.

According to the company, its organic sales were up by 7.5% last year, with a net profit gain of 38.2% to CHF 16.9 billion ($18.3 billion). The increased demand for coffee, pet food and health food boosted the company’s revenue growth as consumer patterns experienced massive shifts during the covid-19 period.

However, the Nespresso coffee capsules and KitKat bars maker reported its expectation of an organic sales growth of around 5% in 2022. Nestle’s board proposed a CHF 2.80 per-share dividend, which the company announced would mark “27 consecutive years of dividend growth.” The group said that CHF 13.9 billion was repaid to shareholders last year when including share buybacks.

The company is also experiencing a change in its board of directors; it will now include Apple’s (ticker: AAPL) chief financial officer Luca Maestri and Schneider Electric’s chief marketing officer, Chris Leong. Nestle’ shares dropped 0.1% in morning trading in Zurich. The stock has been up 18% since last year.