Deals
Nestle's Underwhelming Sales Outlook Puts Pressure on Bulcke
- Stock declines as much as 4.5%, biggest drop in six months
- CEO says dividends, M&A outweigh buybacks for uses of cash
Nestle CEO Bulcke: Acquisitions May Fill Portfolio Holes
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Nestle SA forecast 2016 sales will miss the Nescafe maker’s long-term target for a fourth year, increasing pressure on Chief Executive Officer Paul Bulcke to find new areas of growth as he enters the home stretch of his tenure.
Revenue will increase at a similar rate to last year’s 4.2 percent on an organic basis as it becomes harder to raise prices, the maker of Nespresso coffee and Gerber baby meals said Thursday. The world’s largest food company also reported full-year profit that missed estimates and let down investors who had been expecting a share buyback. The stock fell as much as 4.5 percent.