Swiss food giant Nestle cheers 11.5% profit increase

Nestle’s figures thrashed analysts’ earlier forecasts Zurich – Arabstoday Swiss-based food giant Nestle announced an 11.5-percent increase in net profit for 2012 on Thursday, beating analysts' forecasts with a figure of 10.6 billion Swiss francs [$11.5 billion]. Sales at the group -- known for products such as its Nespresso coffee capsules or Maggi stock cubes -- rose by 10.2 percent to hit 92.2 billion Swiss francs.
Analysts had tipped Nestle to post a net profit of 10.5 billion Swiss francs, but the group's sales figure tallied with market-watchers' forecasts.
"In 2012 we delivered on our commitment: a good, broad-based performance building upon the profitable growth achieved consistently over previous years," Paul Bulcke, Nestle's Belgian chief executive, said in a statement.
The group said that its organic growth was 5.9 percent, and that it was broad-based across all categories and locations.
The figure was 5.9 percent in the Americas, 2.4 percent in Europe and 10.3 percent in Asia, Oceania and Africa.
Price rises contributed 2.8 percent of the group's growth.
"Despite the many challenges 2013 will no doubt bring, we expect to deliver the Nestle model of organic growth between 5 percent and 6 percent as well as an improved margin and underlying earnings per share in constant currencies," said Bulcke.
Source: AFP