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Nestle proves to be recession proof
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February 28, 2002: 3:55 a.m. ET
World's biggest food company post 16 percent rise in profit, expects more growth
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VEVEY, Switzerland (CNN) - Switzerland's Nestle, the world's largest food maker, showed how resilient it was to a recession by posting a 16 percent rise in profit on Thursday.
Nestle, the maker of Nescafe coffee, Perrier mineral water, and Friskies cat food, said 2001 net income rose to 6.8 billion Swiss francs ($4 billion) from 5.8 billion a year ago. Sales rose 4 percent to 84.7 billion francs.
The Vevey-based company, which has been building up a pet food empire to go with its array of human foods, said real internal growth - its own measure of growth stripping out prices changes and acquisitions - rose 4.4 percent, above its owns forecast of 4 percent.
The company, which spent $10 billion acquiring U.S.-based pet food company Ralston Purina last year, said net debt rose to 19.4 billion francs from 3 billion at the end of 2000 but predicted further growth in 2002.
"It is certainly true that we are a little bit more recession-proof than technology companies but we also deliver good results when the economy is doing well," Chief Executive Peter Brabeck told CNN.
"Barring major unforeseen events, Nestle expects the current year to deliver a continued positive trend for its business," said Nestle. "The company therefore expects to progress broth in sales and profits."
Nestle also announced the purchase of Brazilian chocolate and confectionary manufacturer Garoto, which operates two plants with 2,500 staff and sales of about 310 million francs. 
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