Food giant Nestlé has reported a 9% growth in its nine-month sales as price increases allowed the group to ride out rising input costs.
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Sales of CHF 78.7bn in the period were boosted by above-target organic growth of 7.2%, with the company’s food and beverages brands contributing with 6.8% organic growth.
Peter Brabeck-Letmathe, chairman and CEO of Nestlé, said: “The group’s strong organic growth continued over the third quarter, reflecting good performances across most product categories. In spite of increasing input cost pressures, I remain confident that Nestlé will achieve above-target organic growth and a sustainable margin improvement for 2007 as a whole, once again demonstrating the strength of the Nestlé model.”
Brabeck-Letmathe also used today to announce the establishment of Nestlé Professional, a new globally-managed business unit that will look after its existing food services operations. Nestlé Professional will have full operational responsibility from 2008 and full financial responsibility from 2009
Paul Polman was also today appointed as the new head of Zone Americas and Jim Singh as the new CFO.
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By GlobalDataIn the first nine months of 2007, the organic growth of Nestlé’s total Food and Beverages business amounted to 3.8% in Europe, 8.3% in the Americas and 9.5% in Asia, Oceania and Africa.
Looking forward, the group said: “As foreseen at the time of the first-half results, input cost pressures are increasing over the second half of the year. While this has a dampening effect on real internal growth, Nestlé’s outlook for 2007 as a whole remains unchanged: above-target organic growth as well as a sustainable margin improvement.”
