Nestle Warns Of Lower Sales in 2009

Food giant Nestle has said its sales growth in 2009 is likely to come in at the low end of its target range, as the economic crisis makes it more difficult to raise prices.

 The announcement came even as the
company reported that its 2008 profit rose by 69% to 18bn Swiss
francs ($15bn), from 10.65bn francs in 2007, helped by a gain of
9.2bn francs from the sale of its stake in eyewear maker Alcon.

Sales in 2008 rose 2.2% to 109.9bn francs, with organic revenue
up 8.3%. The volume of goods sold rose 2.8%, down from 4.4% in 2007,
after Nestle relied on price rises to help pass on higher commodity
costs to consumers.
The company said it expects to see revenue
for 2009 (excluding acquisitions, disposals and currency swings) “at
least approaching” 5%. It added that it would cut its share buyback
programme to preserve cash.