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Organic Growth

   Also found in: Acronyms, Wikipedia 0.03 sec.
Organic growth
Refers to growth achieved by internal investments of the firm. This could be the day to day business of the firm or a division of the firm starting a new business from scratch. This is distinguished from growth by acquisition or merger which involves an outside firm.

Organic Growth
The growth rate of a company coming from its operations. Organic growth comes about when a company has solid sales, a large client base, and/or low overhead. Organic growth can lead to an expansion of operation without resorting to issuing securities or borrowing from a bank. Specifically excluded from organic growth is growth resulting from a merger or acquisition. Organic growth is considered a leading indicator of a company's underlying performance.


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Organic growth -- which excludes effects from acquisitions and currency fluctuations -- stood at 3.
7% organic growth in 2008 mainly due to consumer price increases put in place by the company to offset higher costs of raw materials.
The Health and Nutrition Division experienced more than 20% organic growth in 2007/08 and has positive prospects for the future too.
 
 
 
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