Food giant Nestle posts record profit

VEVEY РThe Swiss food group Nestl̩ said yesterday that it boosted net profit last year by 20,7 per cent to a record eight billion Swiss francs (N$37,4 billion).

Nestlé, which is the biggest food company in the world, said its sales rose 7,5 per cent, reaching an equally unprecedented 91,1 billion Swiss francs. In a statement, Nestlé’s chairman and chief executive Peter Brabeck said that the company’s “organic” growth target for 2006 was 5-6 per cent.Organic growth is a measurement that excludes exchange rates fluctuations as well as acquisitions and divestments, helping to compare figures year-on-year.Nestlé’s organic growth in 2005 was 6,2 per cent, slightly ahead of the company’s 5-6 per cent forecast.Nestlé said it “experienced particularly strong performances in many emerging markets,” with overall sales of 15,7 billion Swiss francs and organic growth of 6,6 per cent in the Asia, Oceania and Africa region.The increase was most marked in South Asia, where growth was 13,9 per cent.In the Middle East it reached 13 per cent and in Africa 9,1 per cent.Nestlé also performed well in the Americas, with sales reaching 30,7 billion Swiss francs and organic growth of 7,8 per cent.North America saw seven percent organic growth, fuelled by the company’s frozen foods, water and ice cream businesses.In Mexico it was 10,1 per cent and Brazil 5,4 per cent.In Europe, however, the consumer climate remained “subdued,” Nestlé said, with organic growth of two per cent.Sales across the continent reached 27,6 billion Swiss francs.They were boosted by a 20 per cent increase to 1,0 billion Swiss francs in the hard discount sector, the success of which Nestlé said it has been tapping.- Nampa-AFPIn a statement, Nestlé’s chairman and chief executive Peter Brabeck said that the company’s “organic” growth target for 2006 was 5-6 per cent.Organic growth is a measurement that excludes exchange rates fluctuations as well as acquisitions and divestments, helping to compare figures year-on-year.Nestlé’s organic growth in 2005 was 6,2 per cent, slightly ahead of the company’s 5-6 per cent forecast.Nestlé said it “experienced particularly strong performances in many emerging markets,” with overall sales of 15,7 billion Swiss francs and organic growth of 6,6 per cent in the Asia, Oceania and Africa region.The increase was most marked in South Asia, where growth was 13,9 per cent.In the Middle East it reached 13 per cent and in Africa 9,1 per cent.Nestlé also performed well in the Americas, with sales reaching 30,7 billion Swiss francs and organic growth of 7,8 per cent.North America saw seven percent organic growth, fuelled by the company’s frozen foods, water and ice cream businesses.In Mexico it was 10,1 per cent and Brazil 5,4 per cent.In Europe, however, the consumer climate remained “subdued,” Nestlé said, with organic growth of two per cent.Sales across the continent reached 27,6 billion Swiss francs.They were boosted by a 20 per cent increase to 1,0 billion Swiss francs in the hard discount sector, the success of which Nestlé said it has been tapping.- Nampa-AFP