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| Nestle unveils strong net profits on sale of Alcon | Nestle unveils strong net profits on sale of Alcon |
| (40 minutes later) | |
| Swiss food giant Nestle has announced a net profit in 2010 of 34.2bn Swiss francs ($35.6bn; £22.1bn), up from 10.4bn Swiss francs in 2009. | Swiss food giant Nestle has announced a net profit in 2010 of 34.2bn Swiss francs ($35.6bn; £22.1bn), up from 10.4bn Swiss francs in 2009. |
| Profits were boosted by the sale of a stake in eyecare specialist Alcon to healthcare firm Novartis for 24.5bn Swiss francs. | Profits were boosted by the sale of a stake in eyecare specialist Alcon to healthcare firm Novartis for 24.5bn Swiss francs. |
| Without the Alcon sale, Nestle's net profit fell 7% to 9.7bn Swiss francs. | Without the Alcon sale, Nestle's net profit fell 7% to 9.7bn Swiss francs. |
| Nestle said it was well-placed to cope with the "uncertainties" ahead, including rising raw material prices. | |
| The firm, which makes products such as Nescafe coffee, Haagen Dazs ice cream, KitKat chocolate bars and Perrier water, said it was already seeing the effect of rising commodity prices. | |
| "We saw a significant uptick in raw material prices in the second half," said chief financial officer Jim Singh. | |
| "We expect 2.5 to 3bn Swiss francs additional input costs in 2011." | |
| This would represent an 8 to 10% increase on a cost base of about 30bn Swiss francs, a Nestle spokesman told Reuters. | |
| But the chief executive said the impact on prices would vary. | |
| "I cannot tell you what the pricing will be, that depends on the different markets," Mr Singh said. | |
| 'Outlook reassuring' | |
| Nestle said it expected sales to continue to grow this year. | |
| Excluding acquisitions, disposals and currency moves, it predicts growth rates of between 5% and 6% in 2011. | Excluding acquisitions, disposals and currency moves, it predicts growth rates of between 5% and 6% in 2011. |
| The firm also said it would increase the dividend to shareholders from 1.60 to 1.85 Swiss francs per share. | The firm also said it would increase the dividend to shareholders from 1.60 to 1.85 Swiss francs per share. |
| "A very strong set of figures with underlying earnings... on the back of stronger-than-expected top-line growth driven by emerging markets and Asia. Its outlook statement is reassuring," said analyst Jon Cox at Kepler Research. | "A very strong set of figures with underlying earnings... on the back of stronger-than-expected top-line growth driven by emerging markets and Asia. Its outlook statement is reassuring," said analyst Jon Cox at Kepler Research. |
| Nestle shares were up 1.7% to 53.35 francs on the SIX Swiss exchange. |