Nestlé Group's organic growth was 4.5% in 2014, composed of 2.3% real internal growth and 2.2% pricing. Sales were CHF 91.6 billion, down 0.6%, impacted by negative foreign exchange of -5.5%. Acquisitions, net of divestitures, added 0.4% to sales. The Group's trading operating profit was CHF 14.0 billion, representing a margin of 15.3%, up 10 basis points, and up 30 basis points in constant currencies. The Nestlé Group's organic growth was broad-based, 5.4% in the Americas, 1.9% in Europe and 5.7% in Asia, Oceania and Africa. Our business in developed markets grew 1.1%, achieving sales of CHF 51.4 billion. Our emerging markets business grew 8.9%, delivering sales of CHF 40.2 billion. Real internal growth was 2.3% in the Americas, 2.4% in Europe and 2.4% in Asia, Oceania and Africa. In 2014 we created Nestlé Skin Health, complementing Nestlé Health Science, further expanding our existing food and beverage business in line with our strategic ambition to be the world's recognized leading Nutrition, Health and Wellness company. The cost of goods sold fell by 30 basis points as a percentage of sales, driven by product mix and pricing actions and savings created by Nestlé continuous excellence which more than offset increases in raw material costs. Distribution costs were up by 10 basis points. Total marketing and administration expenses rose by 10 basis points as we increased consumer facing marketing support for our brands. Net profit rose CHF 4.4 billion to CHF 14.5 billion. The increase also reflects the profit realized on the disposal of part of the stake in L'Oréal and the revaluation gain on the 50% of Galderma already held when the Group brought its ownership from 50% to 100%. Reported earnings per share were CHF 4.54, up 44.6%. Underlying earnings per share in constant currencies were up 4.4%. The Group's operating cash flow remained strong at CHF 14.7 billion. Paul Bulcke, Nestlé CEO, said: “These are strong results, building on the good growth of past years and delivered in a soft trading environment. They demonstrate the intrinsic strengths of Nestlé: the commitment of our people, our global footprint, the strength of our portfolio and the quality of our innovation. While delivering in the short term, we remain focused on our business long term, strengthening the foundations of future growth. We expect 2015 to be similar to 2014 and we aim to achieve organic growth of around 5% with improvements in margins, underlying earnings per share in constant currencies and capital efficiency.” — SG
