VEVEY, Switzerland Feb 16 Food group Nestle
said it aimed for 2-4 percent underlying sales growth
this year after net profit fell and underlying sales rose less
than expected last year, hit by slowing emerging markets and a
Nestle will step up cost savings to boost profitability and
replaced its "Nestle model" of 5-6 percent underlying sales
growth with a new mid-term goal of "mid-single-digit organic
growth and significant structural cost savings by 2020".
Net profit at the group, led by new Chief Executive Ulf Mark
Schneider since Jan. 1, fell to 8.5 billion Swiss francs ($8.47
billion) last year, well short of the average estimate for 9.59
billion francs in a Reuters poll, hit by a one-off non-cash
adjustment to deferred taxes.
Underlying "organic" sales growth slowed to 3.2 percent from
4.2 percent in 2015.
($1 = 1.0031 Swiss francs)
(Reporting by Silke Koltrowitz; Editing by Michael Shields)