Nestle posts 16% rise in full-year profits to $9.68 billion

21 February 2008

VEVEY – Nestle SA, the world’s biggest food and drink company, reported a 16% rise in full-year net profit Thursday.

Earnings for 2007 reached CHF10.7 billion, up from CHF9.2 billion a year earlier.

The owner of brands such as Nescafe, Perrier and Dreyer’s attributed the growth to price increases and tight cost controls, and proposed to raise its dividend to CHF12.20 francs from CHF10.40 a year ago.

Nestle said the purchase of Novartis AG’s medical nutrition unit and baby food brand Gerber last year helped it increase turnover by 9.2% to CHF107.55 billion from CHF98.46 billion in 2006.