Nestle net profits plunge 39% in 2015

Agence France-Presse
Nestle net profits plunge 39% in 2015

EPA

But the world's biggest food and beverage conglomerate says its organic growth is good

VEVEY, Switzerland – Swiss food giant Nestle said Thursday, February 18, its net profits had plunged by a lower-than-expected 39% last year due to a strong Swiss franc.

Net profit stood at 9.1 billion Swiss francs, lower than the 9.8 billion Swiss francs (8.2 billion euros, $ 9.1 billion) forecast by analysts.  

The company said the lower net profits were “mostly due to the one-off impact from the disposal in 2014 of part of the L’Oreal stake.”

The French cosmetics firm in 2014 bought back an 8% stake that Nestle owned in L’Oreal, boosting the share of the family of heiress Liliane Bettencourt in the company to 33.3%. 

But the Vevey-based firm said organic growth, the real measure of a company’s performance, was good at 4.2% and was “supported by increased momentum in real internal growth combined with continued margin improvement,” according to chief executive Paul Bulcke. – Rappler.com

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