2007 milestone year for Nestlé

All press releasesFeb 21, 2008

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PRESS RELEASE

2007 milestone year for Nestlé:
Sales reach CHF 107.6bn, EBIT margin 14%

• Sales of CHF 107.6bn, up CHF 9.1bn (+9.2%), Food and Beverages sales reach CHF 100.3bn
• Above-target organic growth of 7.4%, 4.4% real internal growth
• EBIT of CHF 15bn (+12.9%), margin of 14%, +50 basis points
• Food and Beverages: 7.1% organic growth, EBIT margin +40 basis points
• Net profit of CHF 10.6bn (+15.8%), earnings per share CHF 27.81 (+16.4%)
• Discipline in capital management: return on invested capital (ROIC) up +100 basis points
• Proposed dividend CHF 12.20 per share, up 17.3% from CHF 10.40 for 2006

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé: "This milestone performance was achieved in a difficult external environment and, for the twelfth year in a row, has demonstrated the power of the Nestlé model: organic growth of at least 5-6% coupled with a sustainable EBIT margin improvement, irrespective of prevailing economic conditions. Nestlé is now uniquely positioned as the world's foremost nutrition, health and wellness company with leading brands, global geographic spread and an exceptional management team. Indeed, Nestlé has ventured far beyond the traditional food industry: our success is now driven more by our capacity to innovate and use our R&D pipeline to launch new, added-value products and services, than by raw material prices or the economic climate. Combined with our strong emphasis on excellence in execution and discipline in capital management, we have, over time, created powerful momentum which will deliver profitable growth for years to come."

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