Nestlé reports healthy half-year profit

Food and drinks company Nestlé has posted a half-year net profit of SFr5.45 billion ($5 billion) as global sales increased despite adverse currency exchange rates.

This content was published on August 11, 2010 - 08:32

The Swiss-based company said sales reached SFr55 billion - up SFr3 billion or 7.5 per cent - compared with last year.

“We have increased investment in our brands, people and capabilities and have prepared the company for a more challenging second half,” said chief executive Paul Bulcke on Wednesday.

The maker of Nescafé, KitKat and Haagen Dazs ice cream, said the biggest growth came from emerging markets, the sale of low-cost alternatives and a strong performance by its premium brands.

Exchange rates slowed down sales as the Swiss franc surged against the euro during the first half.

Nestlé, which earns most of its money outside Switzerland, said these adverse currency effects reduced sales in Swiss francs by 1.5 per cent.

The company benefited from several acquisitions, including the purchase of rival Kraft’s frozen pizza business. and agencies

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