ZURICH , Switzerland ( Reuters ) -- Nestle said it would plough profits into a $ 21 billion share buyback program and shun major acquisitions as pricing power helped it overcome soaring input prices to post a forecast-beating earnings rise . Nestle , producer of KitKat chocolate wafers and Perrier water , has seen an increase in net profit . The world 's largest food company reported an 18.4 percent increase in net profit for the first half of 2007 to 4.916 billion Swiss francs ( $ 4.1 billion ) on Wednesday and said it was likely to beat its own results forecasts for the full year . Nestle shares jumped to the top of the European gainers list in an overall weaker market . `` The strong start to the year allows Nestle to expect above-target organic growth as well as a further sustainable improvement in margins for the full year , '' Nestle said in a statement . Chief Executive Peter Brabeck unveiled a surprise 25 billion franc share buyback and said he expected no major acquisitions in the future , just potential bolt-on buys , as the group digested recent medical and infant nutrition purchases . `` It is now time to consolidate , '' he told CNBC television in an interview following the results release . `` We do not see any major acquisition coming up . '' Sales rose 8.4 percent to 51.1 billion francs as the company pushed through price increases to offset rising input prices for agricultural commodities such as coffee and cocoa . Organic sales growth in the period was 7.4 percent . `` This is a blow-out -- strong figures both in terms of revenues and particularly margins , and Nestle is clearly benefiting from its repositioning into health and wellness , '' said Jon Cox , head of food and beverages research at Kepler Equities . Nestle shares rose 5.5 percent to 476.5 Swiss francs at 0800 GMT as analysts focused on its earnings and sales growth , its improved 2007 outlook and the possibility of asset sales . Nestle and other food processing companies face rising prices for inputs such as milk and grains . But the Swiss-based conglomerate has said it has the muscle to command higher prices on the store shelves to compensate . The company has said it aims to raise prices , cull unprofitable products and speed up production rationalization to prepare for a lasting rise in commodity and energy prices . Nestle also signaled it was moving closer to a possible sale of U.S.-listed eyecare products company Alcon as pressure grows to shed some of its non-food operations , which also include top world cosmetics company L'Oreal . `` It is also clear that with our transformation to health and wellness and as that transition accelerates , Alcon becomes increasingly a financial rather than strategic holding , and we must assess it as such , '' said Chief Financial Officer Paul Polman in a conference call . Nestle owns a 77.55 percent stake in Alcon , which has a market value of $ 41.3 billion , according to Reuters data . The maker of KitKat chocolate wafers and bottler of Perrier water has led rivals Danone and Numico in raising shelf prices in anticipation of higher input costs . Danone and Numico have reported gains in underlying growth , though rising input prices have pressured their margins . Nestle said it would beat its long-standing earnings outlook -- to improve its EBIT ( earnings before interest and tax ) margin at constant currencies and reach underlying sales growth of 5 to 6 percent . Strong growth in emerging markets at 9.7 percent and in the group 's pharmaceutical division , including Alcon , at 11 percent helped compensate for sluggish growth in Europe at 1.4 percent . Analysts polled by Reuters had forecast on average net profit of 4.56 billion Swiss francs ( $ 3.8 billion ) on a 7 percent rise in sales to 50.44 billion francs . Nestle shares had slightly outperformed the DJ Stoxx European food and beverage index from the start of the year to Tuesday 's close , rising around 5 percent compared with around 2 percent for the index . Its shares trade at about 15.6 times forecast 2008 earnings , roughly in line with Unilever and the sector average of 16.2 times . E-mail to a friend . Copyright 2007 Reuters . All rights reserved.This material may not be published , broadcast , rewritten , or redistributed .
Nestle reported an 18.4 percent rise in net profit for H1 2007 to $ 4.1 billion . The company said it expects sales of its products and services will increase by about 5 percent, or $4.5 billion, during the first half of 2008. Nestle is moving closer to a possible sale of U.S.-listed company Alcon .