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Nestle SA forecasts 2016 sales below analyst estimates, increasing pressure on Chief Executive Officer Paul Bulcke to find new areas of growth as he enters the home stretch of his tenure.
Revenue growth will be similar to last year’s 4.2 percent on an organic basis, itself the slowest pace in six years, the Vevey, Switzerland-based maker of Nespresso coffee and Gerber baby food said Thursday. Nestle also reported full-year profit that missed estimates and disappointed those investors who had been expecting a share buyback. The stock fell as much as 3.4 percent, the steepest decline since August.
“A disappointing end to the year for Nestle,” wrote Jeff Stent, an analyst at Exane BNP Paribas. “Guidance is underwhelming albeit realistic and there is no buyback.”
By Corinne Gretler – Bloomberg