Nestle SA reported strong petfood sales in North America and revenue growth in developing countries as reasons for the company's 6% sales increase to nearly US$116 billion in 2010, according to the Glendale News-Press.
The company's biggest challenge remains in developed countries, where effects of the recession are still being felt with lower sales, said the company's CEO, Paul Bulcke. Revenue from developing nations like Africa, Latin America and Asia grew 11% in 2010, compared with about 3% in North America and Western Europe, according to CFO Jim Singh. Singh said the petfood market offers the company more growth as the number of people with companion pets is growing at a rate of 2% per year.
Nestle leaders also said that despite a rise in the cost of raw materials, the company anticipates revenue growth between 5% and 6% in 2011.