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Emerging markets, Nestlé’s most profitable region, helped fuel a 6 per cent rise in sales at the world’s biggest food producer.

Nestlé full-year resultsSalesNet profitEarnings per shareDividendSFr109.7bnSFr34.2bnSFr10.16SFr1.85↑2%↑230%SFr2.92↑15.6%Nestlé on Thursday trumped analyst expectations with a 6 per cent organic growth in sales of continuing operations to SFr104.6bn ($109.3bn). Group net profit came in at SFr34.2bn, boosted by profits from the sale of the remaining SFr24.5bn holding in Alcon.

Analysts welcomed the results. “We can barely find a single negative,” wrote Warren Ackerman of Evolution Securities in a report. He points out that in spite of increasing its marketing spend, Nestlé still expanded margins on earnings before interest and tax by 30 basis points to 13.4 per cent for the continuing operations.

Ebit margins for Asia, Oceania and Africa last year came in at 16.9 per cent. That compares with 16.5 per cent for the Americas, down 30 basis points year-on-year, and 12.6 per cent for Europe.

“In 2010 we delivered another year of strong top and bottom line growth, outperforming the market,” said Paul Bulcke, chief executive officer.

“We are starting 2011 with continued momentum, well placed to face uncertainties ahead, including volatile raw material prices.” Nestlé is forecasting organic growth of 5-6 per cent and further expansion in Ebit margins in constant currencies.

Rob Mann, analyst at Collins Stewart, noted that Nestlé continued to garner growth in the developed world. While emerging market growth, at 6.9 per cent in volumes, outpaced the developed world’s 3.1 per cent, he wrote: “The differential is narrower than in other companies we cover.”

He added: “While obviously reflecting a powerful brand performance in the developed world, it also renders Nestlé less vulnerable to any emerging market slowdown than peers.”

However, after registering strong double growth in China, Mr Bulcke insisted: “I really do feel we are just starting.”

Mr Bulcke added that the company was investing heavily in research and development as well as other areas. “There are many learnings in R&D from Beijing that are going to flow into our way of thinking about food for the rest of the world,” he said.

Africa, now generating $3bn of sales, was also pushing ahead, said Fritz van Dijk, who is in charge of emerging markets. He said the Swiss group was adapting products to local tastes, such as adding honey and ginger to Nescafé in sub-Saharan countries.

Nestlé signalled only modest mergers and acquisitions were on the cards, despite its big cash pile. The dividend was lifted 15.6 per cent to SFr1.85.