Nestle scales back growth targets after Q3 net profit dips to 8.6%

Nestle

Latest News – Food group Nestle said it aimed for 2-4 per cent underlying sales growth this year after net profit fell and sales rose less than expected in 2016, hit by slowing emerging markets and a deflationary environment.

“Two to four percent reflect the macroeconomic uncertainty. This is a volatile and still somewhat deflationary environment. We felt this was wise and prudent,” new Chief Executive Ulf Mark Schneider, who took over on January 1, told reporters at the company’s headquarters.

“But I also wanted to express my confidence that we can get back to mid-single-digit growth by 2020,” he said, adding he expected pricing to improve this year.
Nestle will step up cost savings to boost profitability and replaced its “Nestle model” of 5-6 per cent underlying sales growth with a new mid-term (Read More)

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