Nestle misses the sweet-spot

It's reported its slowest half-year sale growth since 2009

Nestle misses the sweet-spot

John Walton / PA

Nestlé has had a difficult start to 2016 and fallen short of its sale growth targets during the first half of the year.

It has struggled to overcome weak pricing and loose demand in key markets - including China where it has been effected by the broad economic slowdown. 

 

The food giant has announced a net profit of 4.1bn Swiss francs (€3.78bn) - that's a falloff of 8.9% on the same period last year. This is its slowest growth rate since 2009.

Its revenue rose to 43.2bn Swiss francs (€40bn) during the six months, and growth without the effects of currency fluctuations, divestments, and acquisitions came to 3.5% as sales in North America remained healthy.

The group's growth target was been between 5-6%.

Chief Executive Paul Bulcke said, "While we continued to address challenges in China, we enjoyed good performances across the U.S., Europe, South East Asia and Latin America and expect this to continue in the second half."

We also expect pricing, which reached historically low levels in the first half, to recover somewhat in the coming months," he continued.