Categories: Business

Nestle Cuts Sales Growth Target as Profits Fall

Nestle has announced it will steepen its cost-cutting plan after unveiling disappointing results.

The KitKat maker’s net profit for 2016 fell to 8.5 billion Swiss francs from 9.1 billion a year earlier.

Analysts had expected 9.59 billion francs’ worth of profit.

Sluggish food inflation in most of its markets and easing demand in emerging markets saw sales growth slow to 3.2% from 4.2% in 2015.

Nestle has cut its sales growth target to between 2% and 4% for 2017, scrapping its prior “Nestle model” of 5-6% so-called organic growth, which excludes sales from companies it buys.

The company’s new CEO Mark Schneider, who took over the role in January, said: “Our 2016 organic growth was at the high end of the industry, but at the lower end of our expectations.”

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

1 week ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

3 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

3 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

3 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

3 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

3 weeks ago