Nestle upbeat after price rises

Nestle makes brands such as Lion Bar, Smarties and Toffee Crisp

Nestle has unexpectedly raised its outlook for the year, sending its shares rising 4%.

It said sales would grow at a rate to match 2007's of 7.4%. It declined to commit to matching that growth when it released full year results last month.

Nestle pushed through price rises last year because of the rising price of supplies such as wheat and sugar.

But it predicts price pressures on such commodities will ease later in the year, which will boost its profits.

"We can never remember the company being this bullish so early in the year," analysts at ABN Amro said in a research note.

Nestle is the world's biggest food company, producing brands such as KitKat, Perrier, Buitoni and Maggi.