Nestlé today reported a higher-than-expected 5.8 per cent rise in underlying nine-month sales and reaffirmed its year targets as it managed to pass on higher costs to customers.
The world's biggest food maker said it was confident of achieving its year target of between 5 and 6 per cent organic sales growth - its own sales benchmark that strips out currency and acquisitions - and an improvement in constant currency margins.
Nestlé raised prices by 2 per cent in the first nine months of 2005, helping it offset the higher prices of raw materials and oil, which has made packaging and transport more expensive.
The group reported nine-month overall sales rose 4.8 per cent to 67.7 billion Swiss francs (£29.7 billion) from 64.6 billion francs a year ago.
Fifteen analysts polled by Reuters had on average expected Nestlé to report sales of 66.9 billion francs, with forecasts for organic growth averaging 5.2 per cent.
Nestlé shares have risen by more than a fifth so far this year, as investors welcomed its first-ever share buyback and as shares in US eyecare products maker Alcon and cosmetics group L'Oreal , in which it holds stakes, rose strongly.