Nestle Reports Another Strong Quarter, but 2022 Margin Outlook Cautious; Shares Rich

Nestle reported another strong set of top-line growth numbers, with organic growth up 7.5% for 2021 versus 7.1% for company-compiled consensus and 6.5% in our model. Real internal growth (mix and volume effects) was up 5.5% versus 5.2% for consensus and 4.9% in our model, and pricing was up 2% versus 1.8% for consensus and 1.6% in our model. Growth continued to be supported by the retail channel (at an elevated level--up 6.4% in 2021 versus 7.0% in 2020) due to still-robust demand for at-home consumption, with the out-of-home channels recovering as expected, up 24.5% in the period versus down 30.4% in the same period last year.