Nestlé Group last week announced its financial results for the year ended 2005 posting record sales and profits for the year under review.

Reported sales amount to a new high of

more than CHF 91 billion, up 7.5 per cent The single most important factor in this increase is

the strong real internal growth of 4.2 per cent which, with pricing of 2.0 per cent, creates

organic growth of 6.2 per cent, clearly above

market growth. For the first time in five years, many of the group's key trading currencies appreciated against the Swiss franc, resulting in a positive contribution to consolidated sales in Swiss francs of 1.8 per cent Divestments outweighed acquisitions by 0.5 per cent, and slightly reduced sales.

With CHF 11,720 million, the group's EBITA improved by 8.9 per cent and now stands at 12.9 per cent of sales, an improvement of 20 basis points. Despite rising input costs and some unforeseen one-off costs such as the product exchange in China, Nestlé was able to grow margins because of its strong top-line growth and the good results yielded by the cost saving initiatives, Operation Excellence 2007 and Project FitNes and a strong performance by Alcon.

“The above results reflect the positive outlook

of Nestlé Group and this provides the sound backing for Nestlé’s local operations,” commented Giorgio Mondoví, managing director of Nestlé Malta. “Registered growth both in sales and

in earnings before interest, tax and amortisation for Malta were in line with that of the international company with the main growth in Malta being registered mostly in the cereals and coffee categories. Nestlé Malta’s turnover for 2005 was the highest turnover ever achieved by the company since it started operating in Malta and profits improved by 110 basis points.”

“Product innovation, new levels in sales and marketing efficiencies and a respect for product quality and our customers are the main pillars in Nestlé’s strategy – attributes that have been highly reflected in Nestlé Malta’s operations in the local market. This is what has made Nestlé the biggest food and beverage company in the world and as market leaders worldwide, we will continue fulfilling our commitment to deliver quality and premium products to all our customers,” Mr Mondoví concluded.