In 2007, consolidated sales of the Nestlé Group amounted to CHF107.6 billion, an increase of 9.2 per cent over the same period last year. This was driven by organic growth of 7.4 per cent, consisting of real internal growth of 4.4 per cent and price increases of 3.0 per cent.

Acquisitions net of divestitures, primarily driven by the acquisition of Novartis Medical Nutrition and Gerber, contributed another 1.4 per cent of growth while exchange rate fluctuations added another 0.4 per cent. The group’s Food and Beverages business, with sales of CHF 100.3 billion, was the main contributor to growth, achieving organic growth of 7.1 per cent, consisting of real internal growth of 4.0 per cent and price increases of 3.1 per cent.

The group’s EBIT grew by 12.9 per cent to CHF15 billion, resulting in an EBIT margin of 14 per cent, a 50 basis point improvement over 2006. Food and Beverages’ EBIT grew by 12.7 per cent to CHF12.6 billion, resulting in a margin improvement of 40 basis points. These performances were achieved in spite of a negative 10 basis point currency impact. Timely pricing actions, scale efficiencies, cost reduction initiatives, as well as the ongoing strategic transformation process allowed the Food and Beverages business to more than offset higher raw material and energy costs in 2007.

Net profit grew by 15.8 per cent to CHF10.6 billion, resulting in a net margin of 9.9 per cent, up 60 basis points. Earnings per share once again grew at a double-digit rate, by 16.4 per cent to CHF27.81.