Sales at Nestle rose 7.2 per cent in the first nine months of the year, despite the company having to increase prices to offset the sharp rise in the cost of milk, wheat and coffee.

Sales at the Swiss-based maker of Kit-Kat and Nescafe rose to SwFr78.7 billion (£32.8 billion) up from SwFr72.2 billion a year ago. Internal growth, which also strips out inflation, was 4.5 per cent.

Nestle has also completed a management reshuffle, triggered by the appointment of Paul Bulcke as chief executive designate last month, with the promotion of its head of acquisitions to the position of finance director next year.

The company confirmed that James Singh, currently head of acquisitions and business development, will be the next chief financial officer of the company, as it revealed organic sales growth of 7.2 per cent in the first nine months of the year.

The appointment of an acquisitions expert as finance director follows the company's statement earlier this year that it would shun major deals in favour of smaller bolt-on acquisitions, that add to its collection of food and nutrition brands.

Mr Singh takes over from Paul Polman who becomes Nestle's executive vice president in the US next year, taking over the position that had been held by the chief executive designate. Mr Polman joined Nestle two years ago from Procter & Gamble

Peter Brabeck, the current chief executive and chairman, said that he was confident Nestle would achieve underlying sales growth in 2007 of more than its long-term 5 to 6 per cent target and a sustainable improvement in margins for 2007.

Mr Brabeck has held both positions since 2004, during which time he has completed a reorientation of the world's largest food group, steering it away from the confectionery and snack market, towards products designed to promote wellness and health.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax