LONDON (Dow Jones) - Nestle SA said Thursday that nine-month sales rose nearly 5% as it passed along costs to consumers and sold more bottled water and instant coffee.

Nestle nine-month sales rose to SFr67.7 billion ( $52.1 billion ) from SFr64.6 billion a year ago. It posted above-forecast organic sales growth of 5.8%, which included organic growth of 5.6% in food and beverage operations.

Consensus forecasts were for organic sales rise of 5.2%.

Of the 5.8% rise, 3.8% came from higher volumes, or what Nestle calls real internal growth, with 2% coming from higher prices.

Nestle shares climbed 3.3%, more than offsetting the decline on Wednesday in a knock-on from Danone (DA) and Kraft Foods (KFT) results.

By region, food sales in the Americas climbed 7.3% and Asia, Oceania and Africa grew 7% on a comparable basis, while Europe lagged with 1.6% growth.

By activity, beverage volumes grew to SFr17.6 billion from SFr16.4 billion, which Nestle attributed to a strong performance from water and instant coffee. Its milk products, nutrition and ice cream unit also showed a sales rise to SFr18.9 billion from SFr18 billion, helped by dairy products that don't require refrigeration, such as UHT milk.

Bittersweet results came from Nestle's chocolate, confectionary and biscuits unit. Sales rose to SFr7.3 billion from SFr7.1 billion, as its chocolates business was held back in Russia .

Nestle intends to recommend a new buyback program for board approval. Its current share-buyback program is now over 80% completed.

(END) Dow Jones Newswires

10-20-05 0537ET Copyright (c) 2005 Dow Jones & Company, Inc. Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.