Nestle result provides food for thought

Source: Agencies  |   2008-8-8  |     NEWSPAPER EDITION

NESTLE SA yesterday reported a 6.1-percent growth in first-half net profits despite rising costs for transportation and raw materials.

The world's biggest food-and-drink company said it earned 5.21 billion Swiss francs (US$4.93 billion) during the first six months of the year, an increase of 298 million francs on the same period in 2007.

The results beat analysts' expectations. Nestle, which does not break down profit figures by quarter, said the growth was achieved organically.

Sales rose 3.8 percent to 53.07 billion francs, putting Nestle on course for a second successive full-year turnover above 100 billion francs.

"These figures build on the strong momentum gathered from last year's milestone results," Nestle Chief Executive Officer Paul Bulcke said in a statement. The Vevey, Switzerland-based company said the rising cost of raw materials was partly offset by a decline in marketing and administration expenses.