Nestle 1H profit slips, sales grow behind North America

FILE - In this April 7, 2016 file picture 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. Swiss food and beverage giant Nestle says Thursday Aug. 18, 2016 first-half profits dipped due to a one-time tax expense even as revenues edged up behind growth in its key North American food business and despite a slowdown in the Chinese market. (Laurent Gillieron/Keystone via AP,file) (The Associated Press)

FILE - In this Oct. 15, 2015 file picture tThe Swiss flag flies at the headquarters building of the world's biggest food and beverage company, Nestle Group, in Vevey, Switzerland. Swiss food and beverage giant Nestle says Thursday Aug. 18, 2016 first-half profits dipped due to a one-time tax expense even as revenues edged up behind growth in its key North American food business and despite a slowdown in the Chinese market. (Jean-Christophe Bott/Keystone via AP) (The Associated Press)

GENEVA – Swiss food and beverage giant Nestle says first-half profits dipped due to a one-time tax expense even as revenues edged up behind growth in its key North American food business and despite a slowdown in the Chinese market.

The Vevey, Switzerland-based maker of Kit Kats, Lean Cuisine meals, Maggi noodles and Gerber baby foods says net profit came in at 4.10 billion Swiss francs ($4.27 billion), down from 4.52 billion francs a year earlier, due to a 400-million franc deferred tax adjustment.

Sales rose under 1 percent to 43.16 billion francs.

Nestle cited innovations and marketing investment for growth in its North American frozen meals business, particularly at Lean Cuisine and Stouffer's.

But growth in China's food and beverage market slowed significantly, with its Yinlu food unit dragging on performance.