SWITZERLAND: Nestle expects tough year after weak FY | Progresiv
Nestle has said it expects to post subdued growth figures in fiscal 2016, after reporting weaker-than-expected growth for the last year. For 2015, the group saw its net profit drop by more than one-third to 9.1bn Swiss francs, although this was partly due to one-off gains in the previous year. Underlying sales were up a modest 4.2% to 88.8 billion francs (approximately 80.4 billion euros), falling short of the group’s own 5%-6% long-term growth target. 
The group recorded a rise in sales across North America, helped by demand for frozen food and pet products. However, sales were only above flat in Africa and Asai, in part due to the Maggi-related problems in India.
Nestle said it was finding it difficult to raise prices given the global economic scenario, while it adjusts to growing consumer demands for healthier products. The group added: “We anticipate that our trading environment in 2016 will be similar to previous years with even softer pricing. As such we expect to deliver organic growth in line with 2015, with improvements in margins and underlying earnings per share in constant currencies, and capital efficiency." (www.kamcity.com)
