Note	Continuing activities US$m	Discontinued activities US$m	1997 Total US$m	1996 US$m
Sale	1	6,368.8	519.5	6,888.3	6,968.4
Cost of sales		(4,734.1)	(390.8)	(5,124.9)	(5,260.2)
Gross margin		1,634.7	128.7	1,763.4	1,708.2
Net operating costs		(1,498.3)	(148.1)	(1,646.4)	(1,610.3)
Operating profit	2	136.4	(19.4)	117.0	97.9
Share of profits less losses of associates		72.5	(6.0)	66.5	70.2
Profit on sale of Nestlé Dairy Farm	3	--	24.6	24.6	--
Closure costs of Wellsave, Japan & Mannings, Taiwan	3	--	(54.5)	(54.5)	--
Repositioning provisions in Franklins and Kwik Save	3	--	--	--	(77.5)
Profit before interest	1	208.9	(55.3)	153.6	90.6
Net interest expense	4	(7.7)	(5.8)	(13.5)	(16.4)
Profit before taxation		201.2	(61.1)	140.1	74.2
Taxation	5	(33.3)	--	(33.3)	(37.4)
Minority interests		(0.2)	22.7	22.5	4.7
Profit after taxation and minority interests		167.7	(38.4)	129.3	41.5
Preference dividends		(13.6)	--	(13.6)	(13.6)
Profit attributable to ordinary Shareholders		154.1	(38.4)	115.7	27.9
				US¢	US¢
Earnings per ordinary share	7			6.45	1.60
Earnings per ordinary share excluding discontinued activities and exceptional items	7			8.59	7.94

STATEMENT OF MOVEMENTS ON REVENUE AND OTHER RESERVES for the year ended 31st December 1997
	Note	1997 US$m	1996 US$m
At 1st January Profit after taxation and minority interests from continuing activities		810.6 167.7	760.9 151.9
Discontinued activities and exceptional items		(38.4)	(110.4)
		129.3	41.5
Preference dividends		(13.6)	(13.6)
Ordinary dividends	6	(109.7)	(105.3)
Property revaluation surplus		--	89.2
Reserves arising on scrip issued in lieu of dividends		50.9	25.8
Net exchange translation differences	18	(55.9)	11.8
Other		(0.6)	0.3
At 31st December		811.0	810.6