Nestle, which makes KitKats, Nescafe and Purina pet food, has said it will steepen its cost-cutting plan after unveiling disappointing results.
Net profit for 2016 fell to 8.5bn Swiss francs (£6.78bn) from 9.1bn a year earlier.
Analysts had expected 9.59bn francs’ worth of profit.
Sluggish food inflation in most of its markets and easing demand in emerging markets saw sales growth slow to 3.2% from 4.2% in 2015.
The company has cut its sales growth target to between 2% and 4% for 2017, scrapping its prior “Nestle model” of 5-6% so-called organic growth, which excludes sales from companies it buys.
New chief executive Mark Schneider, who took over the role in January, said: “Our 2016 organic growth was at the high end of the industry, but at the lower end of our expectations.”
