DEPRESSION OVERCOME

Southland Times, Issue 21661, 24 March 1932, Page 4

DEPRESSION OVERCOME

NESTLE EXAMPLE. "The extraordinary restoration of Nestle fortunes,” writes ■ the World’s Press News, "certainly proves the case in favour of large-scale advertising, and is worthy of study by those smaller companies which adopt the short-sighted policy of spending less on. advertising directly depression or misfortune comes along. "The Nestle and Anglo-Swiss Condensed Milk Co., controls Peters, Caillier, Kohler, Chocolat Suisses and other undertakings. Soon after the War it found itself in difficult circumstances, and in 1922, which was really the first year of its recover)', profits were insufficient even to pay the preference dividend. In the following year there was a jump in net profits from 3,100,939 francs to 10,280,581 francs, an improvement which continued until the ‘peak’ year of 1929 yielded a net profit of 28,234,897 francs. In the last six years the ordinary shareholders have received an annual 5 per cent, dividend (the first year of dividend resumptions being 1925), and in the last two years they have been given an increased bonus, in addition to their dividend, of 11 per cent, per annum, making a total in each of the last two years of 16 per cent, on the ordinary capital”