The following content is sourced from external partners. We cannot guarantee that it is suitable for the visually or hearing impaired.
(Bloomberg) -- Nestle SA, the world’s biggest food company, reported the slowest nine-months sales growth since it began reporting the figure in 1999 and forecast similar growth for the full year.
Revenue climbed 2.6 percent on an organic basis, the Vevey, Switzerland-based company said in a statement Thursday. Analysts expected 2.5 percent growth.
Chief Executive Officer Mark Schneider needs to prove he can turn around the maker of Nespresso coffee and Cailler chocolate as sales growth ebbs. Activist investor Dan Loeb has said the company got stuck in its old ways while competitors have adapted to a lower-growth environment amid changing consumer habits.
Nestle also said it expects additional restructuring costs of 400 million francs ($408 million) to 500 million francs this year, which means its trading operating margin will decline by 40 basis points to 60 basis points in constant currency.
The company earlier had forecast its full-year organic sales growth would be at the lower half of its 2 percent to 4 percent target.
To contact the reporter on this story: Corinne Gretler in Zurich at email@example.com.
To contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, Thomas Mulier, John J. Edwards III
©2017 Bloomberg L.P.