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Nestlé's half-yearly net profit climbs 8.9 per cent

Business improves in all geographies.

Nestlé has reported a net profit of 5.1bn Swiss francs, an increase of 8.9 per cent compared to 4.7bn francs for the same period last year.

Earnings per share (on reported basis) increased to 10.3 per cent by 1.61 francs (2011: 1.46 francs).

Trading operating profit increased by 6.3 per cent to 6.6bn francs (2011: 6.2bn francs).

Group sales increased by 7.5 per cent to 44.1bn francs (2011: 41bn francs), while marketing and administration costs were down 20 bps.

The group achieved organic growth of 6.4 per cent in the Americas; in Europe it saw growth of 2.6 per cent; in Asia, Oceania and Africa, it grew 12.6 per cent. The group’s business grew 12.9 per cent in emerging markets and 2.6 per cent in developed markets.

By division, Nestlé Waters achieved sales of 3.6bn francs, while Nestlé Nutrition reported sales of 3.8bn francs. Nestlé Professional, Nespresso, Nestlé Health Science and Cereal Partners Worldwide divisions also delivered strong growth during the first half.

Paul Bulcke, CEO of Nestlé, said:

Our first-half performance shows the relevance of our strategic roadmap in today's new reality and demonstrates our swift and disciplined execution behind it, making the right choices at the right time. We continue to drive innovation globally, ranging from popularly positioned products to super premium offerings.

We are continually opening new routes-to-market to reach emerging consumers, and using new media to increase both our direct engagement with consumers and our return on brand investment. This approach has delivered profitable growth in both emerging and developed markets. Our first-half top line growth and our trading operating profit margin, together with our focus on capital efficiency, allow us to reconfirm our full-year outlook.

The company expects to deliver an organic growth of 5 to 6 per cent, improved margin and underlying earnings per share in constant currencies for the full year.