Nestlé posts profits but expects tough 2012
Swiss food giant Nestle has reported full-year net profit of SFr9.5 billion ($10.35 billion) in 2011 while also predicting a tough year ahead.
The results published on Thursday compare with a 2010 profit of SFr34.23 billion, which was inflated by the sale of Nestlé’s stake in eye care company Alcon that added SFr24.5 billion net to its balance sheet.
Sales growth was 7.5 per cent, exceeding analysts’ expectations. Turnover fell slightly less than expected to SFr83.6 billion, down from almost SFr110 billion in 2010.
"It was a challenging year and we do not expect 2012 to be any easier,” said CEO Paul Bulcke, referring to “continuing economic uncertainties and volatility”.
The group said business continued to grow in all regions of the world, most notably by 13.1 per cent in Asia and Africa. Turnover also rose in all product categories. Sales of Nespresso coffee capsules for instance rose by 20 per cent to more than SFr3.5 million. Among its products the biggest spike was in powdered and liquid drinks, which increased by 13 per cent.
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