Nestle sees maintaining 5-6 pct organic growth rate target over next 10 years |
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Thu, 22 Feb 2007 09:43
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VEVEY, Switzerland (AFX) - Swiss food company Nestle SA said it expects to maintain its long-term organic growth rate target of 5-6 pct over the next ten years, while it hopes to 'sustainably improve' operating profit (EBIT).In parallel, Nestle also hopes to boost the return on its invested capital (ROIC) during the period, the company said in a presentation for today's annual media briefing.Nestle earlier today reported a 6.2 pct organic sales growth, unchanged from a year ago, but above the group's long-term target, pledging to achieve another 5-6 pct organic growth in 2007.Nevertheless, raw material prices remain challenging for Nestle, with further cost increases expected in milk products, green coffee and cereals.In an interview with CNBC, Nestle CEI and chairman Peter Brabeck said that the food company plans to meet rising raw material prices with further price hikes over the course of the year.Regarding share buybacks, Nestle said it has currently no plans to replace the 3 bln sfr buyback programme that ended last October.The shares repurchased under this programme have been earmarked for cancellation at the group's next AGM.afx.zurich@afxnews.comat/lamCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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