Nestle sees profits fall

What happened?

Nestle, well known for making KitKats has said its set to steepen its cost-cutting plans after revealing disappointing results.

Its net profit for 2016 fell to 8.5bn Swiss francs (£6.78bn) from 9.1bn a year earlier.

Analysts had expected to see a profit worth 9.59bn francs’.

Slow-moving food inflation in most of its markets and easing demand in emerging markets saw sales growth slow to 3.2 per cent from 4.2 per cent in 2015.

The company has cut its sales growth target for 2017 to between two per cent and four per cent.

Chief executive Mark Schneider, who took over the role in January, said: “Our 2016 organic growth was at the high end of the industry, but at the lower end of our expectations.”

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