Nestlé is to carry out an eight billion Swiss franc (€6.6 billion) share buyback and revealed stronger sales growth in emerging markets in contrast to other big consumer products companies.

The share buyback follows Nestlé’s sale of an 8 per cent stake in French cosmetics company L’Oréal earlier this year and the repurchase plan was bigger than originally expected by the market.

The world’s biggest food group by sales is still grappling with weak demand in China, but achieved growth in many smaller markets in Asia, Africa and Latin America.

Nestlé’s rivals, including Unilever, Beiersdorf, Mondelez International and Diageo, have all blamed emerging market weakness for disappointing results this year.

Nestlé has been able to combat slowing demand in these markets, which make up 44 per cent of overall sales, by investing in its leading brands and by getting rid of underperformers.

"The environment in emerging markets remains a mixed picture," Nestlé chief financial officer Wan Ling Martello said.

“We continue to see very good growth in many of the smaller markets, a recovery in south Asia, while China remains tough in some categories.”

She said Nestlé had increased prices in some emerging markets to offset weaker local currencies.

Emerging market sales growth accelerated to 9.7 per cent in the first half, from 8.2 per cent a year ago and 8.5 per cent in the first quarter.

That included double-digit growth in Latin America and robust growth in Turkey, Pakistan, Africa and the Philippines.

Ms Martello said conditions remained challenging in China but should improve in the second half.

The company also stood by its forecast for overall organic sales growth of about 5 per cent this year. – (Reuters)