Nestle sees constant currency earnings growth of 6%-10% through 2025

At its investor seminar today in Barcelona, Nestle said it will share its strategy for "sustainable value creation" and outline its 2025 targets. The company "will detail how it will continue to deliver sustainable mid single-digit organic sales growth." Nestle expects to return to an underlying trading operating profit margin range of 17.5% to 18.5% by 2025, following the margin impact of a "sharp increase in cost inflation" in 2021 and 2022. The company also expects to deliver an annual underlying earnings growth range of 6% to 10% in constant currency over the period 2022 to 2025. It plans to trend toward free cash flow of 12% of sales and ROIC of 15% by 2025. CEO Mark Schneider said, "We have made significant progress in recent years, accelerating organic growth, increasing margins and enhancing capital efficiency. Today, we outline our value creation model and targets for 2025 as we aim to deliver consistently in turbulent times. We will continue to invest for future growth, investing behind our brands, delivering impactful innovation, leveraging digitalization and improving speed and agility. Creating shared value for stakeholders remains our focus, with Good for You, Good for the Planet at the heart of our strategy."