Vevey, April 21, 2008
- Sales of CHF 25.7bn, up CHF 1.5bn (+6%)
- 9.8% organic growth for the Group as a whole
- 9.8% organic growth for Food and Beverages
- Continued strong real internal growth momentum: 4.5% (Group), 4.2% (Food and Beverages)
- Nestlé Nutrition achieves 14.4% organic growth, 10.2% real internal growth
- Full-year outlook: organic growth approaching 2007 level with improved EBIT margins in constant currencies

Paul Bulcke, CEO of Nestlé: "The strong start to the year reflects Nestlé's momentum as the world's leading nutrition, health and wellness company. On the basis of this high-quality growth, with a good balance between real internal growth and pricing, I am confident that we will achieve our 2008 targets: organic growth approaching the 2007 level together with improved EBIT margins in constant currencies."

In the first quarter of 2008, the Nestlé group reached consolidated Swiss franc sales of 25.7 billion, up CHF 1.5 billion or 6.0% over the same period last year. Reported sales benefited from a very strong organic growth of 9.8%, including 4.5% real internal growth. Food and Beverages also delivered 9.8% organic growth, of which 4.2% consisted of real internal growth. Acquisitions, net of divestitures, added another 3.2% to Group sales, primarily due to the acquisition of Gerber and Novartis Medical Nutrition in 2007. The net currency effect reduced reported group sales by 7% due to the strength of the Swiss franc compared to most other currencies.

Food and Beverages salesIn the first quarter of 2008, the organic growth of Nestlé's total Food and Beverages business (the Zones as well as globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nespresso, the Food and Beverages joint ventures) amounted to 6.1% in Europe, 10.9% in the Americas and 14.9% in Asia, Oceania and Africa.

Sales by management responsibilities and geographic areas Jan.-March 2008
Sales in CHF millions Jan.-March 2007
Sales in CHF millions Jan.-March 2008
Real Internal Growth (%) Jan.-March 2008
Organic Growth (%) Food & Beverages
- Zone Europe 6 690 6 497 2.9% 6.6%
- Zone Americas 7 457 7 393 3.7% 11.5%
- Zone Asia, Oceania and Africa 4 134 3 846 5.3% 14.0%
Nestlé Waters 2 164 2 322 -2.3% -0.6%
Nestlé Nutrition 2 577 1 632 10.2% 14.4%
Other Food & Beverages(a) 922 805 21.5% 23.2%
Total Food & Beverages 23 944 22 495 4.2% 9.8%
Pharma 1 773 1 756 8.9% 8.5%
Group Total 25 717 24 251 4.5% 9.8%
(a) Mainly Joint ventures managed on a worldwide basis and Nespresso
All calculations based on non-rounded figures

Zone Europe: sales of CHF 6.7 billion, 6.6% organic growth, 2.9% real internal growth. A majority of the countries in the Zone enjoyed strong performances. Eastern Europe continued to experience double-digit organic growth. Western Europe also did very well, with Great Britain achieving near double-digit organic growth. By category, PetCare achieved strong growth led by premium brands such as Dog Chow. Soluble coffee did well, including the continued successful roll-out of Nescafé Dolce Gusto. An increased focus on Mövenpick of Switzerland helped ice cream sales in the low season.

Zone Americas: sales of CHF 7.5 billion, 11.5% organic growth, 3.7% real internal growth. Both North and Latin America achieved good organic growth. Pricing and other actions were applied across the Zone in response to continued input cost rises. The good performance of brands such as Nescafé, Nesquik, Nido, Coffeemate, Garoto and Dog Chow ensured strong organic growth in their respective product groups.

Zone Asia, Oceania and Africa: sales of CHF 4.1 billion, 14.0% organic growth, 5.3% real internal growth. The Zone's strong real internal growth was due to the strength of key brands such as Nescafé, Milo, Nido and Maggi, and it delivered double-digit organic growth in many product groups. Emerging markets did particularly well, especially South Asia, the Middle East, Indochina and the Philippines. Dairy products achieved positive real internal growth despite cost pressures over the past year.

Nestlé Waters: sales of CHF 2.2 billion, -0.6% organic growth, -2.3% real internal growth. These figures reflect the tough comparison with an excellent first quarter in 2007, as well as softer market conditions in the developed world. However, many developing markets enjoyed strong performances. Turkey, the Middle East and Latin America delivered double-digit organic growth. In terms of brands, Nestlé Pure Life maintained strong momentum with double-digit organic growth.

Nestlé Nutrition: sales of CHF 2.6 billion, 14.4% organic growth, real internal growth of 10.2%. This excellent performance was driven by near double-digit real internal growth in infant nutrition, mainly due to the continued roll-out of premium NAN starter formulas and infant cereals with branded active benefits. Jenny Craig achieved strong double-digit organic growth and its "improved health" campaign is proving a great success. The integration of Novartis Medical Nutrition and Gerber is almost complete and these businesses are performing in line with acquisition expectations.