SWISS food giant Nestle’s net profit and sales rose last year, as it sold shares in cosmetic company l’Oreal and hiked prices amid soaring international inflation, showed group results today.

Businesses face supply chain disruptions and decades-high inflation as the global economy recovers from the Covid-19 pandemic and energy prices surge.

Nestle – the maker of everything from coffee to pet food and plant-based meat – said its net profit bounced by 38.2% to 16.9 billion Swiss francs (RM76.7 billion) last year.

As restaurant sales improved and price hikes accelerated in the last quarter under inflationary pressure, its total sales increased 3.3% to 87.1 billion francs.

Its organic growth – which excludes the effects of acquisitions or divestments to focus on a company’s core operations – reached 7.5%, with coffee the largest contributor.

Pet products also performed well, with double-digit growth for Purina PetCare.

Sales in vegetarian and plant-based food – an area where Nestle and other food companies have been investing – also grew at a double-digit rate to reach 800 million francs.

“In 2021, we remained focused on executing our long-term strategy and stepping up growth investments, while at the same time navigating global supply chain challenges,” said Nestle chief executive Mark Schneider in a statement.

“We limited the impact of exceptional cost inflation through diligent cost management and responsible pricing.” – AFP, February 17, 2022.