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Nestlé SA has reported full-year results for 2018. Total reported sales increased by 2.1% to CHF 91.4 bn (2017: CHF 89.6 bn). Net acquisitions had a positive impact of 0.7% and foreign exchange reduced sales by 1.6%. According to the company, organic growth was 3.0%, with continued strong real internal growth (RIG) of 2.5% and pricing of 0.5%. Growth was supported by stronger momentum in the United States and China, as well as in infant nutrition.

The underlying trading operating profit (UTOP) margin reached 17.0%, up 50 basis points. The trading operating profit (TOP) margin increased by 30 basis points to 15.1%, reflecting higher restructuring-related expenses. Earnings per share increased by 45.5% to CHF 3.36 on a reported basis. Underlying earnings per share increased by 13.9% in constant currency and by 13.1% on a reported basis to CHF 4.02.

Mark Schneider, Nestlé CEO, said: "We are pleased with our progress in 2018. All financial performance metrics improved significantly and we saw revived growth in our two largest markets, the United States and China, as well as in our infant nutrition business. Nestlé keeps investing in future growth and – at the same time – has increased the amount of cash returned to shareholders through our dividend and share buyback program. We made significant progress with our portfolio transformation and sharpened our Group’s strategic focus, strengthening key growth categories and geographies in the process.”

Nestlé today announced that it proposes Dick Boer, former President and CEO of Ahold Delhaize N.V., and Dinesh Paliwal, President and CEO of Harman International Industries Inc., a subsidiary of Samsung Electronics Co., Ltd., for election to its Board of Directors. The elections will take place at the Annual General Meeting on April 11. Two current directors, Jean-Pierre Roth, and Ruth Oniang’o will retire from the Board, as they have reached the age limit set out in the Board Regulations. The Board also proposes the individual re-election of the Chairman and the other current members of the Board. With the proposed nominees, the Nestlé Board will comprise 14 members, of which 12 are independent directors.

Confectionery providers in German retail faced declines in both sales and volume in 2018. The Nielsen market research institute reported that proceeds from confectionery sales for the entire year were down by - 1.2% at € 14.295 bn. Sales volume sank by - 2.8% to 1,740 m tonnes (basis: food retailers + drug stores + impulse channels + gas station shops + department stores). Year-round products dropped - 1.4% in sales (€ 12.590 bn) and - 3.0% in volume (1.567 m tonnes). Seasonal products were only slightly below last year‘s figures with revenues of € 1.705 bn (- 0.2%) and 172,499 tonnes (- 1.1%) in volume.

Sales channel development was as follows: confectionery sales suffered steep declines at the discount trio Aldi/Lidl/Norma (sales - 4.1%; volume - 6.5%), department stores (- 6.0%; - 6.7%), small supermarkets (- 6.9%; - 5.5%), as well as impulse channels + gas station shops (- 6.7%; - 6.5%). The only bright spot was in small consumer markets (+ 2.4%; + 2.4%).

Salty snacks were the only product group demonstrating sales growth (+ 3.3%). Sales of chocolate products slumped - 1.7%. The sweet baked goods sector (- 2.7%) and the sugar confectionery segment (- 4.0%) were also facing declines.

With top exhibitors like Bosch, Chr. Hansen, GEA or Mettler-Toledo leading a Who’s Who of the industry, ProFood Tech 2019 (26 to 28 March, Chicago) is set to convene 7,000 processing professionals over 125,000 net square feet of exhibit floor. Produced by three of the world’s trade show leaders, Pack Expa, Koelnmesse – organizer of Anuga and Anuga FoodTec – and the International Dairy Food Association (IDFA), this is the only event in North America focused exclusively on all food and beverage sectors.

ProFood Tech has massive support from across market sectors and is unrivalled in its ability to bring the processing industry together and address the most critical issues. The three-day event’s 400 exhibitors will showcase cutting-edge crossover technologies and innovative solutions for professionals from sectors like baking and snacks, confectionery, grains/mill/cereals, fruits and vegetables or ingredients.

Confectionery sales in German retail had not recovered from the heat spell in July and August by the end of the 2018 fiscal year. IRI’s confectionery monitor showed a revenue decline of 1.3% to € 12.819 bn for all of 2018. Sales volume sank by 3% to 1.721 m tonnes (basis: food retailers + drug stores + hard discounters + gas station shops).

Salty snacks continue to be the only product group with revenue growth at 4% to € 3.229 bn and increased sales volume (+ 1.3%) of 408,403 tonnes. Providers of chocolate products (without season) lost value compared with the year prior (- 2.1%; € 5.465 bn) as well as volume (- 3.1%; 543,398 t). In the sweet baked goods and cakes category revenues fell by 4.4% to € 2.177 bn, and volume came in significantly lower with a 6% decline at 414,099 tonnes.

Sugar confectionery products remained far below last year’s figures for both sales (- 3.8%; € 1.949 bn) and volume (- 4.1%; 355,066 t). Market researchers at IRI calculated for the chewing gum segment a sales decline of 2.2% to € 489.9 m and a drop in volume of 2.6% at 343.7 million units.

Nestlé is accelerating its journey towards reaching full supply chain transparency by disclosing the list of its suppliers alongside a variety of data on its 15 priority commodities. These commodities cover 95 % of the company’s annual sourcing of raw materials. This is reportedly the first disclosure of its kind in the industry and comes at a time when global consumers demand to know exactly what is in their food and where it comes from.

“Transparency in our supply chains is essential and we will continue to lead in this area,” says Magdi Batato, Executive Vice President, Head of Operations at Nestlé. “Following the public disclosure of our palm oil and pulp and paper supply chains last year, we are now pleased to release supply chain information for soya, meat, hazelnuts and vanilla”.

By mid-2019, Nestlé will also publish the supply chain information for our other priority commodities which include seafood, coconut, vegetables, spices, coffee, cocoa, dairy, poultry, eggs, cereals and sugar. The disclosure includes the list of direct suppliers, upstream locations and country of origins as well as total volume sourced for each commodity.

The Barry Callebaut Group announced that it has successfully closed the acquisition of Inforum, a leading Russian B2B producer of chocolate, compound coatings and fillings. The integration will start as of now. This acquisition, in line with the “smart growth” strategy, will transform Barry Callebaut’s presence in the high-growth Russian market.

By joining their complementary forces, Inforum and Barry Callebaut will be able to better serve all customers and segments of the market with high-quality chocolate and compounds as well as world class innovation, and to broaden the reach of their Gourmet & Speciality business. The parties have agreed not to disclose any financial details of the transaction.