India, Pak boost Nestle sales

Nestle, the world's largest food company, confirmed its goal for raising sales in the coming decade by as much as 6 per cent a year at constant exchange rates as Russian shoppers buy more Nescafe.

Nestle also expects to improve operating profit as a percentage of sales, the Vevey, Switzerland-based company said in a presentation today.

The Swiss company has fuelled growth by boosting business in emerging markets. Profit from India rose 22 percent in the first quarter, while earnings from Pakistan gained 25 percent.

"Both the top-line and margin dynamics are improving as Nestle focuses on bigger brands with faster growth,'' Matthew Jordan said, and a London-based team of analysts at Dresdner Kleinwort, wrote in a note to clients. Shares of the maker of Nespresso coffee fell 37 centimes, or 2 per cent, to 472.5 Swiss francs at 12:27 p.m. in Zurich. The shares have gained 29 percent in the past 12 months.

Nestle has committed about $10 billion since 2005 to buying nutrition companies, whose sales are growing faster than the rest of the food industry.

The maker of Neslac and Good Start infant formulas agreed this month to acquire Novartis AG's Gerber baby-food brand for $5.5 billion.