“Nestlé continued to make good progress in a period characterised by political and economic instability, natural disasters, rising raw material prices and, yes, a strong Swiss franc. This has made for an extremely tough, volatile and competitive environment. But by leveraging our competitive advantages, investing behind our growth drivers and excelling in operational efficiency and effectiveness, we managed to drive growth not only in emerging markets but also in developed countries, especially in Europe. Furthermore we improved our trading operating margin while increasing investment in our brands,” said Nestlé CEO, Paul Bulcke during the presentation of the food giant’s results for the first half of 2011.

The Group reported organic growth of 7.5% and a trading operating profit margin of 15.1%, up 20 basis points reported, up 40 basis points in constant currencies, compared with the first half of 2010. Indeed, Nestlé registered growth both in emerging and developed markets, with organic growth of 5.7% in the Americas, 5.8% in Europe and 13.3% in Asia, Oceania and Africa – a reflection of strong alignment and investment in strategic growth priorities and brands, supporting a fast-flowing innovation pipeline and increased investment in R&D and factories. Pricing increased in the second quarter to 3.8% compared to 1.5% in the first quarter, resulting in 2.7% pricing for the half year. There was a decrease in Group sales of 12.9% to CHF 41 billion, due to an impact of 13.8% from foreign exchange and of 6.6% from divestitures, net of acquisitions. The Group’s trading operating profit margin increased by 20 basis points and by 40 basis points in constant currencies.

In Europe, Nestlé Group reported sales of CHF 7.5 billion, a 4.1% organic growth and a 2.7% real internal growth, as well as a trading operating profit margin was at 16.4%, and an increases of 200 basis points. Strong performances in Western Europe were registered in France, Italy, Benelux, the Nordic region and Switzerland, while Greece and the Iberian region managed to achieve positive growth despite severe economic conditions.