26 March 2020 | News
Nestlé saw strong progress in 2019, with significant improvements in key operating and financial metrics
Nestlé has published its Annual Report for 2019. The Annual Report contains Nestlé’s Annual Review including Creating Shared Value highlights. It also contains the Corporate Governance & Compensation Reports and the Financial Statements, which were first published on February 13, 2020, and remain unchanged.
Nestlé saw strong progress in 2019, with significant improvements in key operating and financial metrics. Organic growth reached 3.5%, fully in line with guidance. Profitability improved again as the underlying trading operating profit (UTOP) margin increased by 60 basis points to 17.6%, reaching the mid-term target announced in 2017 one year ahead of plan.
The report highlights Innovation which continues to give Nestlé a competitive advantage. In order to keep pace with rapidly-changing consumer preferences, the company has changed its approach to innovation. It has made processes quicker, enhanced rapid prototyping and created accelerators. The company funded 50 additional fast-track innovation projects leading to product launches within 6 to 12 months. It has significantly reduced the average duration of centrally-led research and innovation projects.
Also heightening digitalization, it says that digitalization is a key ingredient to continued business success. Digitalization touches on all aspects of Nestlé’s business, from supply chain management to production to marketing and sales. In 2019, e-commerce sales grew by 18.5% to account for 8.5% of total sales, firmly establishing Nestlé at the leading edge of the food and beverage industry.
The company is moving to connect with consumers in a relevant and personalized way. In 2019, 20% of all consumer contacts with Nestlé were personalized.