|
Nestle's tasty first half
|
 |
August 22, 2001: 2:35 a.m. ET
Swiss food group beats forecast on strong growth from emerging markets
|
LONDON (CNN) - Switzerland's Nestle, the world's largest food maker, said its half-year profit rose 12.7 percent on strong growth in emerging markets.
Net profit in the six months to June 30 rose to 3.15 billion Swiss francs ($1.9 billion), or 8.15 francs a share, from 2.8 billion francs, or 7.27 francs a share, a year earlier. Sales rose 6.3 percent to 41.2 billion francs.
The company predicted its full-year report would show higher sales and earnings than in 2000. For the first half, growth in net profit exceeded the expectations of analysts, who had anticipated a 7 percent gain.
But at the trading profit level - earnings before interest and tax - Nestle fell short of market forecasts. Trading profit was 4.3 billion francs, little changed from a year ago, and below forecasts of 4.56 billion.
Vevey, Switzerland-based Nestlé, which is building up a pet food empire to go with its array of human foods, said its $10 billion acquisition of U.S.-based Ralston Purina was on track and is expected to be completed before the end of the year.
Nestle, the maker of Nescafe coffee, Perrier mineral water, and Friskies cat food, said its real internal rate of sales growth was 4.6 percent, up from 4.5 percent a year ago, and above its own long-term target of four percent.
On that basis, the company saw growth in Asia, Oceania and Africa reach 7.2 percent, while sales in the Americas rose 2.9 percent, with renewed growth in some Latin American countries compensating for a slower pace in the U.S.
"Barring unforeseen events, Nestle remains confident in its capability to deliver higher sales and profits for 2001 than in 2000," the company said. 
|
|
|
|
|
 |
|
