Dairy performs for Nestlé

SWITZERLAND – Milk products were one of the strongest product groups for Nestle in 2004, the company has said.

Reporting its results for the year to 31 December it said that sales of milk products grew 5.9% in 2004. Overall, the group’s milk product, ice cream and nutrition division saw sales up 5.4%, held back by 0.5% growth in ice cream.

However, the company said it was pleased with ice cream performance through the poor weather in summer 2004. It said that it has maintained market share and that it is closing the gap on European ice cream market leader Unilever.

Overall, the company saw 4.5% in higher raw material and packaging costs. The company now feels strong enough financially to carry out a €64.5 million share buyback programme, which will start in the second half of the year.