Nestle: H1/2009 net profit falls two percent

Vevey / CH. (nsa) Nestle S.A. has posted a two percent fall in first-half net profit as divestments and the strength of the Swiss Franc (CHF) weighed on sales. The world´s biggest food and drink company says it earned 5,1 billion CHF in the first six months of the year. The result was slightly ahead of analysts´ expectations. Nestle said that sales fell 1,5 percent to 52,3 billion CHF. Second-quarter sales were 27,1 billion CHF. Basic essentials:

• Nestle Group: 3,5 percent organic growth; 0,5 percent real internal growth
• EBIT margin 14,1 percent; plus 30 bps both in reported and constant currencies
• Food and Beverages: 3,4 percent organic growth; 0,1 percent real internal growth
• EBIT margin 12,4 percent; plus ten bps reported; plus 20 bps in constant currencies
• Net profit: 5,1 billion CHF; 9,7 percent of sales
• Underlying earnings per share: 1,46 CHF, plus 3,5 percent reported; plus 8,5 percent in constant currencies
• Operating cash flow: 6,4 billion CHF, up from 3,5 billion CHF in the first half of 2008

Nestle reports sales each quarters, but earnings only on the half-year and full-year. CEO Paul Bulcke said he was pleased the company enjoyed 3,5 percent organic growth in a very challenging business environment. He said he expects that figure to improve in the second half of the year.