SWISS group Nestl has reported a huge increase in profit in the first half of the year.

The group, which owns Rowntree's in York, said profits for the half-year were up 79 per cent and the company earned £2.5bn. Sales rose by more than seven per cent.

The figures were boosted by the stockmarket listing of eyecare business Alcon and the sale of Food Ingredients Specialities.

However the group missed its target for four per cent internal growth, which reached 3.6 per cent.

Chief executive Peter Brabeck said the good performance had demonstrated Nestl's capacity for growth and performance even in a difficult global environment.

He said: "Our traditionally sound financial policies have allowed us to further increase our profit margins and at the same time to grow both internally as well as externally.

"As a result we have obtained leading profitable positions in businesses hitherto considered as developing areas, such as petcare, water and ice cream.

"Nestl is in excellent financial health, has strong market positions around the world and is, therefore, well placed to report continued progress in sales and profits on a constant currency basis for the remainder of the year."

He added: "With its good robust financial health, strong market positions and its capacity to deliver operational improvements whilst approaching its targets for real internal growth, Nestl expects to report continued progress in sales as well as in profits."