// IP Marketing video - START// IP Marketing video - END

Nestle says will steepen cost cutting plan after disappointing results

Nestle says will steepen cost cutting plan after disappointing results

PanARMENIAN.Net - Nestle, which makes KitKats, Nescafe and Purina pet food, has said it will steepen its cost-cutting plan after unveiling disappointing results, BBC News reports.

Net profit for 2016 fell to 8.5bn Swiss francs from 9.1bn a year earlier. Analysts had expected 9.59bn francs' worth of profit.

Sluggish food inflation in most of its markets and easing demand in emerging markets saw sales growth slow to 3.2% from 4.2% in 2015.

The company has cut its sales growth target to between 2% and 4% for 2017, scrapping its prior "Nestle model" of 5-6% so-called organic growth, which excludes sales from companies it buys.

New 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."

 Top stories
As the National Statistical Service reports, imports to Armenia totaled $803.7 million, registering a 17.9% increase year-on-yea
75.8 million kWh of Armenian electricity have been shipped to the Georgian market in the first quarter of 2017.
The government has made a decision to allocate to Sastex the building of the former regional hospital and the adjacent areas.
He said that his government would also focus on fighting corruption and "eliminating all barriers that impede business from developing".
Partner news