Nestle cuts sales outlook as nine-month organic growth disappoints

October 20, 2016 1:44 AM EDT

Boxes of baby food are seen in the company supermarket at the Nestle headquarters in Vevey, Switzerland, February 16, 2012. REUTERS/Denis Balibouse/File Photo

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ZURICH (Reuters) - Nestle cut its sales growth target for the year after the world's largest packaged food company reported tepid underlying sales momentum during the first nine months of 2016.

The Swiss food giant on Thursday said it now expected its full-year sales to rise by 3.5 percent after posting an increase of 3.3 percent for the nine months. It previously said it expected full-year organic sales to rise by around 4.2 percent.

Sales rose to 65.51 billion Swiss francs ($66.19 billion)from 64.86 billion Swiss francs a year earlier, Vevey-based Nestle said. The figure lagged the average analyst estimate of 66.00 billion francs in a Reuters poll.

Analysts polled by Reuters had on average expected organic growth -- which strips out the impact of acquisitions and currency swings -- of 3.7 percent.

(Reporting by John Revill, Editing by Michael Shields)

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