Nestle 2010 net triples to $35 bn

Food giant Nestle today reported over three-fold jump in net profit to 34.2 billion Swiss francs ($35.7 billion) in 2010 driven by sale of its eyecare business and strong revenues from emerging markets, including India and China.

The company had a net profit of 10.4 billion Swiss francs in 2009, Nestle said in a statement.

The company's overall sales increased by 2% 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% 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% 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% in the Americas, 3.7% in Europe and 10.2% 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% interest to Novartis AG for $28.3 billion.

Looking ahead, Nestle is confident of achieving an organic growth in the range of 5-6% 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% and six% and an EBIT (earings before interest, tax) margin improvement in constant currencies," Bulcke added.