Nestle net profit triples to $35 bn in 2010

The company’s overall sales increased by 2 per cent to 109.7 billion Swiss francs in 2010. While on organic basis,which excludes the effect of exchange rates and acquisitions,sales increased by 6.2 per cent in 2010 from year-earlier.

The Switzerland-based company attributed its smart performance to the sale of its eyecare business and strong sales in emerging markets.

“In 2010,we delivered another year of strong top and bottom line growth,outperforming the market. We increased investment in our brands,our operations and our people. We continued to drive efficiency and effectiveness in both developed and emerging markets,” Nestle CEO Paul Bulcke said.

Food and beverages operations achieved good growth with market share gains in all categories and regions. Organic growth in emerging markets stood at 11.5 per cent which underlines the increasingly important role they will play in the future,the company said.

Besides,organic growth for food and beverages was 5.7 per cent in the Americas,3.7 per cent in Europe and 10.2 per cent in Asia,Oceania and Africa.

“Emerging markets achieved double digit growth,with strong performances across the Zone: from Africa,Asia,including India and China,Indonesia and Indochina,and the Middle East,” the company said.

The good numbers were encouraged by the sale of the Alcon eyecare business,in which Nestle sold its 52 per cent interest to Novartis AG for USD 28.3 billion.

Looking ahead,Nestle is confident of achieving an organic growth in the range of 5 -6 per cent in 2011.

“We are starting 2011 with continued momentum,well placed to face uncertainties ahead,including volatile raw material prices. We are therefore confident of achieving the Nestle Model in 2011: organic growth between five per cent and six per cent and an EBIT (earings before interest,tax) margin improvement in constant currencies,” Bulcke added.