Bulletin: Nestlé's 2020 Results Show Resilience Amid Higher Debt

PARIS (S&P Global Ratings) Feb. 19, 2021--S&P Global Ratings said today that the full-year 2020 operating performance of food and beverage producer Nestlé S.A. (AA-/Stable/A-1+) was solid, even though credit metrics weakened slightly due to higher debt. Last year, Nestlé generated organic revenue growth of 3.6%, led notably by large profitable businesses like Petcare (+10.2%) and Milk Products (+7.9%), which enjoyed strong consumer demand. However, sales from the low-margin Water and Confectionary segments declined due to weak demand in the out-of-home channel. We note the 5% growth in the Americas region in 2020, which includes the U.S., Nestlé's largest single market. Profitability has improved, with the S&P Global Ratings-adjusted EBITDA margin rising by around 40 basis points to over 21%

...February 19, 2021 PARIS (S&P Global Ratings) Feb. 19, 2021--S&P Global Ratings said today that the full-year 2020 operating performance of food and beverage producer NestlT S.A. (##-/Stable/A-1+) was solid, even though credit metrics weakened slightly due to higher debt. Last year, NestlT generated organic revenue growth of 3.6%, led notably by large profitable businesses like Petcare (+10.2%) and Milk Products (+7.9%), which enjoyed strong consumer demand. However, sales from the low-margin Water and Confectionary segments declined due to weak demand in the out-of-home channel. We note the 5% growth in the Americas region in 2020, which includes the U.S., NestlT's largest single market. Profitability has improved, with the S&P Global Ratings-adjusted EBITDA margin rising by around 40 basis points to over 21% in 2020. This reflects the higher share of earnings from large profitable segments (like Petcare, Milk Products, and Coffee) and cost savings. Free operating cash flow (FOCF) decreased...

Bulletin