2007 was a milestone year for Nestlé

In 2007, consolidated sales of the Nestlé Group amounted to CHF 107.6 bn, an increase of 9.2% over the same period last year. According to the company this was driven by organic growth of 7.4%, consisting of real internal growth of 4.4% and price increases of 3.0%. Acquisitions net of divestitures, primarily driven by the acquisition of Novartis Medical Nutrition and Gerber, contributed another 1.4% of growth while exchange rate fluctuations added another 0.4%.

The Group`s Food and Beverages business, with sales of CHF 100.3 bn, was the main contributor to growth, achieving organic growth of 7.1%, consisting of real internal growth of 4.0% and price increases of 3.1%. The Group s EBIT grew by 12.9% to CHF 15 bn, resulting in an EBIT margin of 14%, a 50 basis point improvement over 2006. The Zone Europe reached sales of CHF 28.5 bn, which means 2% real internal growth and 3% organic growth.

In the confectionery sector Nestlé reported sales of CHF 12.2 bn, 2.3% real internal growth and 5.3% organic growth. All three categories – chocolate, sugar and biscuits – grew, led by emerging markets in Latin America and Asia. Kit Kat had a strong year, particularly in Oceania, South Asia and most markets in Europe.