Nestlé Group reports record sales and profits in 2005

Swiss concern Nestlé SA has reported an organic growth of 6.2% results in record sales of CHF 91.1 bn in year 2005. Net profit increases 20.7% to record CHF 8.0 bn.EPS was up 21.3%,underlying EPS up 12.9% Peter Brabeck-Letmathe, Chairman and CEO, explains: “The 2005 results demonstrate the strength of the Nestlé Model. The performance reflects the power of our brands, the quality of our innovation and the benefits of our efficiency programs. The enhanced dividend proposal and the share buy-back demonstrate Nestlé’s commitment to creating long-term, sustainable value for our shareholders.For 2006,I expect organic growth of between 5 and 6%, as well as a continued improvement of the EBITA margin in constant currencies.” investment in unsuccessful ventures last year coupled with rising commodity prices blighted 2005 results in the confectionery segment. Biscuits were strong in Latin America Chocolate did well in Japan, Canada, Australia and some emerging markets.Even in the UK, Aero was the fastest growing major brand in the market, with over 30% growth. Sugar confectionery,in particular particular the Wonka brand, performed well in the US,its biggest market, while Biscuits were strong in Latin America, their key region. Strong performance in confectionery in Japan Japan continued to experience deflation but achieved positive real internal growth, the market benefiting from several new product launches in soluble coffee, as well as a strong performance in confectionery. In ice cream,the Nestlé group achieved market share gains in different parts of the world, particularly in North America, where there was strong growth from Dreyer’s Slow Churned, as well as new launches such as Häagen-Dazs Light and Dibs.