Asia boosts Nestlé's record results for 2006

Strong organic growth of 6.2 percent drove up Nestlé sales in 2006, resulting in record results. The company’s food and beverages business fuelled growth, contributing $5.4 billion or 74 percent to the Group’s $5.9 billion of growth. Net profit soared to $7.5 billion, up 13.8 percent.

The organic growth of Nestlé's total food, beverage and nutrition business was 7.9 percent in Asia, Oceania and Africa—consisting of 6.0 percent real internal growth and price increases of 1.9 percent.

With sales of $12.5 billion in 2006, there was strong organic growth in culinary, chocolate, shelf-stable dairy and powdered beverages. China, India, Africa and the Middle East reported strong results.

With sales of $14.3 billion in 2006, prepared dishes and cooking aids experienced 4.8 percent organic growth, with real internal growth of 4.2 percent. Maggi did especially well in emerging markets.

With sales of CHF 11.4 billion in 2006, chocolate, confectionery and biscuits reached 2.6 percent organic growth, with real internal growth of 0.5 percent. Kit Kat performed pwell globally, benefiting from the growing consumer preference for lighter chocolate products. In Europe the picture was mixed with stronger performances in Italy and the Iberian peninsula, and weaker ones in Great Britain and Germany. In the US, business was down in a declining market.

With sales of $4.9 billion in 2006, Nestlé Nutrition achieved 6.1 percent organic growth, consisting of 2.2 percent real internal growth and price increases of 3.9 percent. Nestlé Nutrition did well in Asia, but its overall performance was held back by China. The business reportedly achieved strong gains in infant nutrition.

Nestlé Nutrition’s EBIT margin fell by 80 basis points, mainly reflecting the previously-foreseen dilutive effect of the Jenny Craig acquisition and start-up costs of the global Nestlé Nutrition business.

"The year 2006 was another record year for Nestlé,” says Peter Brabeck-Letmathe, chairman and CEO. For 2007, despite the tough input cost environment, we again plan to deliver organic growth of between 5 and 6% as well as an EBIT margin improvement."