Nestlé CEO ditches sales target after disappointing annual results
Switzerland — Nestlé’s new CEO scrapped the food company’s long-standing sales target as it reported disappointing annual results on Thursday, adopting a more cautious tone in an uncertain environment. The maker of Kit Kat chocolate bars and Nescafé coffee is aiming for between 2% and 4% underlying sales growth this year, below analysts’ estimates and the "Nestlé model" for growth of 5% to 6%. In his first public appearance since becoming CEO at the start of the year, food industry newcomer Ulf Mark Schneider said the lower target reflected economic uncertainty. "This is a volatile and still somewhat deflationary environment," Schneider told reporters at the company’s Vevey headquarters. "We felt this was wise and prudent." The earnings from Nestlé are the latest in a series of tepid results from consumer goods groups which have blamed weakness in the emerging markets that had previously fueled their growth. Unilever cited problems in Brazil and demonetisation in India, while Danone...
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