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By Bloomberg

Nestle SA, the world’s biggest food company, forecast 2015 sales growth near the low end of its long-term target after reporting the slowest annual sales growth in five years, hit by stagnant revenue in China.

Revenue will increase “around” 5 percent in 2015, excluding acquisitions, disposals and currency shifts, the Vevey, Switzerland-based maker of Nespresso coffee and Maggi bouillon cubes said in a statement Thursday. Sales on that basis gained 4.5 percent in 2014, matching the median estimate in a Bloomberg News survey.

For two years in a row, Nestle has reported annual sales growth below the level of its long-term goal of average 5 percent to 6 percent annually. Revenue in the Greater China region, Nestle’s second-largest market, was little changed due to a slowdown in products such as confectionery. The Swiss maker of Stouffer’s convenience meals has also been struggling with deflationary pressure in Europe and is trying to turn around its frozen-food business in North America.

“With organic growth again below the long-term target, it raises the question whether the goal should not be corrected downwards,” said Patrik Lang, an analyst at Julius Baer Group Ltd. in Zurich. “But it’s still clearly better than what we’re seeing the rest of the sector, which is why investors will still be happy.”

Nestle also said it aims to achieve improvements in margins and underlying earnings per share in constant currencies. The stock traded 0.4 percent higher at 71.35 francs as of 9:05 a.m. in Zurich, giving a market value of 230 billion francs ($244 billion).

Slower China

Sales growth in the Asia Oceania Africa region was 2.6 percent, compared with 2013’s 5.6 percent pace, largely due to China and Oceania, Nestle said. Revenue in greater China was little changed at 6.64 billion francs. The company said it plans further changes to its product portfolio in China in 2015 to meet consumer demands.

Political turmoil in Asia and the outbreak of Ebola in Africa made business there tougher, Nestle said in October. Weaker demand in emerging markets such as China has led Unilever, the maker of Ben & Jerry’s ice cream, to forecast no significant improvement in market conditions in 2015.

“2014 can be considered to be a very solid year for Nestle in a tough environment,” Andrew Wood, an analyst at Sanford C. Bernstein, wrote in a note to investors.

Frozen Food

Nestle’s North American frozen-food business weighed on growth in the region, the company said today, adding that it’s continuing efforts to reposition its Lean Cuisine, Hot Pockets and Stouffer’s meals by making them more “organic and ethnic.”

The maker of KitKat bars has been revamping its portfolio to revive sales growth. Bulcke has sold underperforming assets such as PowerBar snacks and the company is seeking a partner for its Davigel European frozen-products unit. The CEO has also been building Nestle’s dermatology business, having spent about $5 billion last year to acquire L’Oreal SA’s stake in a skincare joint venture plus rights to drugs from Valeant Pharmaceuticals International Inc.

Speculation arose this week that Nestle may be interested in buying Italian hazelnut-spread maker Ferrero SpA after the death of owner Michele Ferrero on Feb. 14. The Alba-based company said three days later it isn’t for sale.