Nestle sales fall short of targets

Food group Nestle has missed forecasts with a 4.2% rise in annual underlying sales and predicted only a similar outcome this year, saying it was getting harder to raise prices in a tough economic environment.

It was the third successive year the maker of Nescafe coffee and Kitkat bars fell short of its long-term target of 5% to 6% growth, disappointing investors who still look to the Swiss giant to outperform rivals thanks to its broad reach and efficient management.

“It was a generally disappointing report, nothing better than average,” said Bernstein analysts in a note.