Swiss food and drink giant Nestle said volatile markets, rising costs and the strength of the Swiss franc dragged down profits during the first half of the year.

Kit-Kat to Haagen Dazs firm Nestle today turned in a weaker underlying performance for 2010 as soaring commodity prices ate into profit margins.

Food giant Nestle today said it was on course to hit its full-year targets after coffee business Nespresso and household favourite Kit Kat lifted sales.

Kit Kat-to-Nescafe foods giant Nestle today set its sights on even stronger growth this year after outperforming rivals in 2009.