Excellent first half for Nestlé in 2008: 8.9% organic growth, 3.5% real internal growth - EBIT margin in constant currencies +60 basis points, +30 basis points reported
Vevey, August 7, 2008
- Sales of CHF 53.1 billion, +CHF 2 billion, 8.9% organic growth, 3.5% real internal growth
- EBIT of CHF 7.3 billion (+6.1%), margin +60 basis points in constant currencies, +30 basis points reported, to 13.8%
- Results driven by Food and Beverages: 8.9% organic growth, 3.2% real internal growth, EBIT margin +50 basis points in constant currencies, +30 basis points reported
- Net profit of CHF 5.2 billion (+6.1%), margin +20 basis points to 9.8%, total EPS CHF 1.39 (+8.6%)
- Acceleration of share buyback programme, CHF 13 billion to be completed by year end
- Full-year outlook: organic growth at least at 2007 level with improved EBIT margins

Paul Bulcke, CEO of Nestlé: "These figures build on the strong momentum gathered from last year's milestone results. Nestlé's drive to become the world's recognised leader in nutrition, health and wellness, its strong billionaire brands and its focus on speed and discipline in execution have allowed the company to further accelerate its performance under difficult economic conditions. I am therefore confident that 2008 will be another year of delivering the Nestlé model, with organic growth at least at the 2007 level and a further improvement in EBIT margins. Our Food and Beverages business will be the key driver of this profitable growth."

Share buyback programme
The share buyback programme is accelerating and the Group expects to spend around CHF 9 billion on buying back its own shares in 2008, an increase of about CHF 2 billion compared to the original plan. By the end of the year, approximately CHF 13 billion of the CHF 25 billion share buyback programme announced a year ago will have been completed.

Outlook
In the first half of 2008, Nestlé's organic growth was stronger than last year in each of the three geographic regions. These performances, mirrored by strong results in the product groups, together with a positive overall development of EBIT margins, demonstrate that Nestlé is resilient and able to create opportunities for profitable growth even in challenging economic times. Indeed, the excellent first half of 2008 supports the statement made in February that Nestlé's success is increasingly driven by its capacity to innovate and use its R&D pipeline to launch new, added-value products and services in line with its nutrition, health and wellness strategy.

Nestlé's strong emphasis on speed and excellence in execution, as well as continuing momentum, will deliver profitable growth in the second half of 2008 and beyond. In view of its first half performance, Nestlé foresees organic growth at least at the 2007 level for the full year, clearly above the company's long-term target, together with an improvement in EBIT margin. 2008 will therefore be another year of delivering the Nestlé model.