Nestle growth continues apace

Nestle growth continues apace
By Staff writer
Tue 31 Oct 2006 08:00 PM

Swiss food producer Nestle has announced strong sales figures for the first nine months of 2006. Total sales were up by 9.1% to CHF 72.2 billion (US $56.8 billion), compared with CHF 66.2 billion (US $52.1 billion) in 2005. The company also reported abovetarget organic growth of 6.1% and strong real internal growth of 4.6% (4.2% for food and beverages). Nestlé is confident of delivering its full-year objective of 5%-6% organic growth. Real internal growth was strong at 4.6% and pricing added another 1.5%, resulting in an organic growth of 6.1%. Foreign exchange contributed 2.8% to reported sales, while acquisitions, net of divestitures, had a minimal net effect of 0.2%.

Peter Brabeck-Letmathe, chairman and CEO of Nestlé, said: “Our strong growth has continued into the third quarter of 2006. We are still facing volatile raw material and energy prices, but overall, I feel comfortable in reconfirming our reaching the upper end of our long-term organic growth target of between 5% and 6%, combined with an improvement of the EBIT margin in constant currencies for the full year. “We have also continued to make progress in our transformation into a nutrition, health and wellness company through our active business portfolio management and the announced changes in our top management,” he added.

In Asia, Oceania and Africa, Nestle benefited from the strength of business across many different markets in the zone, from Africa, the Middle East and Asia. Milo enjoyed double- digit organic growth, Kit Kat performed well in Japan, and Maggi culinary products were particularly successful. Nescafé, milk products and pet care also showed good results, according to Nestle.

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