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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Nestle profits grow ahead of expected slowdown AFP - Thursday, August 12 Send IM Story Print Nestle profits grow ahead of expected slowdown ZURICH (AFP) - – Nestle, the world's biggest food and beverage group, on Wednesday posted a 7.5 percent increase in first-half net profit as it braced for a more challenging period in the coming months. Net profit for the first six months of the year reached 5.5 billion Swiss francs (4.0 billion euros, 5.2 billion dollars), the group said in a statement. Income grew strongest in the Asia, Oceania and Africa region, up 11.7 percent, followed by the Americas at 7.2 percent. Sales in Europe remained stagnant, however. Overall sales totalled 55.3 billion francs, up 5.7 percent. "We have increased investment in our brands, people and capabilities and have prepared the company for a more challenging second half," chief executive Paul Bulcke said in a statement. Nestle maintained its target of organic growth averaging 5.3 percent over the full year, below the accelerating growth rate of 6.3 percent achieved in the first half. The group said it had taken advantage of a deeper distribution and the roll out of cheaper products in emerging nations, where it posted 10 percent growth in its business. Sales in Asia, Oceania and Africa grew by 11.7 percent, followed by the Americas (7.2 percent). Sales in Europe, Nestle's second biggest market after the Americas, continued to lag behind the rest of the world, with an increase of 2.5 percent. However, Nestle said sales of bottled water in developed nations had returned to growth after falling consumption over a couple of years under the pressure of environmental concerns in Europe and North America. Bottled water sales in emerging nations continued to boom with near 20 percent organic growth. Nestle's coffee capsule business, which is set to face growing competition, grew by 25 percent with sales of more than three billion Swiss francs. Recommend Send IM Story Print News Search Top Stories WHO list reveals flu advisors with industry ties US posts widest trade gap in 20 months Supermodel diamonds evidence meant to be 'low-key' Pakistan issues fresh flood warning New superbugs spreading from South Asia: study More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Visitors attack Taiwan 'haunted house' actors Chelsea agree Carvalho fee with Real A long, hot Ramadan for many devout Muslims Supermodel diamonds evidence meant to be 'low-key' New superbugs spreading from South Asia: study More Most Viewed » Argentine students crack three-decade-old murder mystery 40 US billionaires pledge half wealth to charity World's first full face transplant man appears on TV Calcium supplements linked to heart attacks: study Massive ice island breaks off Greenland glacier More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010

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