ZURICH (Dow Jones)--Nestle SA (NESN.VX) will likely face a continued rise in commodity costs this year, Chief Financial Officer Jim Singh said Friday.
"We're in an environment where we expect input cost to rise between 2% and 3%," Singh said.
Nestle will counter this development by a combination of product changes, efficiency gains, and price increases, Singh said in a conference call with analysts after the release of 2009 earnings.
Asked about Nestle's growth outlook, Singh said Nestle still aims to achieve an organic growth of between 5% and 6% but added this is a long-term goal.
Earlier Friday, Nestle said it wants to increase organic growth in its food and beverages business this year, but didn't provide a specific target. It also reiterated its usual guidance for an improved operating profit margin in constant currencies.
Company Web site: www.nestle.com
-By Martin Gelnar, Dow Jones Newswires, +41 43 443 8042; firstname.lastname@example.org