Strong organic growth of 7.4% with a positive contribution from all regions and businesses, partly due to higher demand ahead of expected price increases
Food and beverage confirms momentum with 7.1% organic growth, fuelled by move towards nutrition, health and wellness
Nestlé Nutrition, on a like-for-like basis, reached its 10.0% target organic growth
Swiss franc sales up 6.4% to CHF 24.3 billion (CHF 22.8 billion in 2006)
Group reconfirms its 5 to 6% organic growth target with improved constant currency EBIT margins for the full year, and this in spite of continued significant input cost pressures, mainly in agricultural raw materials


Peter Brabeck-Letmathe, Chairman and CEO, said: "Nestlé is off to a strong start, not least with an excellent performance of our food and beverage business. These encouraging figures reflect the acceleration of our move towards nutrition, health and wellness across our main food and beverages brands, as well as the strong performance of our globally-managed Nestlé Nutrition unit which achieved its long-term target of 10% organic growth. Input costs remain high, but our strong brands enable us to continue to adjust prices. We therefore expect the Group to reach its objectives of organic growth between 5 and 6%, as well as continued improvement of the EBIT margin in constant currencies in 2007. The acquisition of Gerber has further accelerated the transformation process and will give Nestlé undisputed global leadership in nutrition, health and wellness."

In the first quarter of 2007, the Nestlé group reached consolidated Swiss franc sales of 24.3 billion, up 6.4% over the same period last year. Reported sales benefited from a strong organic growth of 7.4%, of which 5.7% were from real internal growth and 1.7% from price increases. Food and beverages delivered 7.1% organic growth, consisting of 5.3% real internal growth and 1.8% price increases. The net currency effect reduced reported group sales by 1.5%, whereas acquisitions, net of divestments, had a slight positive impact of 0.5%.

Sales by Management Responsibilities
Jan.-March
2007 Jan.-March
2006 Real internal growth
Jan.-March
2007 Organic growth
Jan.-March
2007
in CHF million % %
Zone Europe 6 497 6 217 +1.6 +1.9
Zone Americas 7 393 7 235 +4.4 +7.2
Zone Asia, Oceania and Africa 3 846 3 642 +8.1 +10.3
Nestlé Waters 2 322 2 116 +9.5 +10.0
Nestlé Nutrition 1 632 1 349 +7.0 +10.0
Other food and beverages * 805 627 +19.3 +20.6
Total food and beverages 22 495 21 186 +5.3 +7.1
Pharma 1 756 1 609 +10.8 +12.1
Total 24 251 22 795 +5.7 +7.4
* Mainly Joint ventures managed on a worldwide basis and Nespresso
All calculations based on non-rounded figures.

Outlook
In view of the strong start to the year, Nestlé can reconfirm its targets for the full year: organic growth of between 5 and 6% and an EBIT margin improvement at constant currencies, and this in spite of continued significant input price pressures, mainly in agricultural raw materials.