BUSINESS

Nestle's net profit fell in 2016, expects to increase restructuring costs

The Associated Press Published Thursday, February 16, 2017 3:03AM EST

Nestle's directors speak in front of the Nestle's logo during the general meeting of the world's biggest food and beverage company, Nestle Group, in Lausanne, Switzerland on April 7, 2016. (Laurent Gillieron / Keystone)

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GENEVA - Swiss food and drinks giant Nestle says net profit fell 6 per cent last year, with double-digit declines at its Chinese food unit dragging on growth and core growth overall at the low end of its expectations.

CEO Mark Schneider says Nestle plans to increase restructuring costs "considerably" this year.

The Vevey, Switzerland-based vendor of Maggi noodles, Stouffer's frozen foods and KitKat chocolate bars said net income in 2016 fell to 8.53 billion Swiss francs, down from 9.07 billion a year earlier.

Revenues rose 0.8 per cent to 89.47 billion francs.

Nestle did not break out earnings by quarter. It said Thursday that organic growth, excluding the impact of acquisitions, rose 3.2 per cent last year, at the low end of its expectations. It is expected to rise 2 to 4 per cent this year.