Peter Brabeck-Letmathe, Chairman and CEO of Nestlé stated that the company achieved both strong growth and improved margins, partly due to the company's strategic transformation into a nutrition, health and wellness company. The integration of Novartis Medical Nutrition into Nestlé Nutrition's Healthcare business started last month, and steps have been taken to ensure a speedy integration of Gerber as soon as the deal closes during the second half of the year.

Sales of products containing Branded Active Benefits (BABs) grew by over 18% in the first half of the year, exceeding €12.8 billion. The addition of these businesses will create a Nutrition operation with annual sales of €6.1 billion, the clear global leader.

"I am confident of Nestlé achieving above-target organic growth for 2007, as well as a sustainable margin improvement. Finally, the Board has approved a new, three-year €15.3 billion share buy¬back programme. This reflects our commitment to an efficient capital structure and our continued confidence in the business," Brabeck-Letmathe added.

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