Nestle announced a 69% increase in net income, mostly due to a one time gain from the sale of the company's share in Alcon. However, Nestle did experience organic growth of 8.3%, beating estimates. The company announced 2009 guidance of 5% growth for 2009.
A JP Morgan analyst downgraded the company on expectations that Nestle would miss its 2009 sales target of 5% growth.[1] The analyst wrote that any sales growth would come at the expense of profit margin as the company would have to cut prices or increase marketing costs.
Nestle confirmed that their 2008 sales were growing as predicted and predicted continued growth in the future.