Nestle, the Kit Kat and Nescafe coffee maker, reported lower than expected sales for the full year, as high inflation continued to impact customer demand.
In an update, the Swiss company said total reported sales were CHF 93bn (£83bn), a decrease of 1.5 per cent.
The confectionery giant, which also produces the likes of Maggi stock cubes, said organic sales grew by 7.2 per cent.
This is below analyst expectations of 7.4 per cent, a report on Reuters said.
Mark Schneider, Nestlé chief executive, said: “Unprecedented inflation over the last two years has increased pressure on many consumers and impacted demand for food and beverage products.
“In this challenging context, we delivered strong organic growth and solid margin improvement with increased marketing and other growth investments. Our free cash flow generation returned to historical levels.”
Looking ahead to the rest of the year, Nestle said it expects a “moderate” increase in organic sales to around four per cent.
More to follow