Swiss Nestle, the world's biggest food company, is continuing to shake off the effects of a global economic slowdown.

The maker of Nescafe coffee, Perrier water and numerous chocolate bars reported net profits of 6.7bn Swiss francs (�2.8bn; $3.9bn) in 2001, a 16% rise over the previous year.

And it is expecting to improve on its strong performance during the current year.

"Barring major unforeseen events, Nestle expects the current year to deliver a continued positive trend for its business," the firm said in a statement.

"The company therefore expects to progress both in sales and profits."

Despite the profits boom, Nestle is still intent on cutting costs.

The firm expects to save 3bn Swiss francs by 2006 through a programme designed to streamline global production.