Nestle alters sales policy

Nestle has said it will change its sales recognition policy effective 1 January 2011, bringing it in line with International Financial Reporting Standards. Reported sales will drop by around 15 per cent as expenses like discounts and retailer promotions will be deducted from sales, leading to a corresponding increase in profit margins. However, the change is not expected to affect net profit or earnings per share. Nestle said it would publish restated 2010 figures after its results for the year to allow for comparisons to results from 2011.