Nestle sees slower sales as New CEO plans restructuring

Swiss food giant Nestle says headline profits were hit by one-off tax effects in 2016

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.

This is both a somewhat deflationary and volatile market, the CEO told reporters at Nestle headquarters in Vevey. "We felt this was wise and prudent".

Unilever cited problems with its results in Brazil and India's demonetization, while Danone pointed its finger at the tougher that normal conditions across China.

Swiss food giant Nestle said Thursday that its headline profits were hit by one-off tax effects in 2016, and expressed caution for the outlook for the current year.

The news has left a bit of a bad taste in investors' mouths - shares edged down 1.37 per cent in early trading.

Schneider replaced the "Nestle Model", which the Swiss company has missed for four straight years, with the slightly vaguer goal of "mid-single-digit organic growth and significant structural cost savings by 2020".

He is expecting pricing will improve during 2017 and is planning to use both cost-cutting as well as portfolio management as ways to help reach his targets.

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

The Swiss consumer giant, owner of Nesquik flavored drinks, Puppy Chow pet food and Stouffer's frozen dinners, said sales were CHF89.5 billion (about $89 billion) past year, slightly below analyst expectations. For 2017, Vevey, Switzerland-based is targeting organic growth of between 2% and 4%, nearly halving the long-standing previous target of growth between 5% and 6%, which is known as the "Nestle Model".

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