LONDON, Feb 22 Reuters Nestle reported fullyear organic sales growth slightly below expectations on Thursday as the world39;s biggest packaged food company continued to hike prices, prompting some shoppers to turn to competing brands.

The Swiss firm also said it expects organic sales growth of around 4 in 2024, and a moderate increase of its underlying trading operating profit UTOP margin. The 2023 UTOP margin was 17.3, up by 40 basis points in constant currency.

Organic sales, which exclude the impact of currency movements and acquisitions, rose 7.2 in the year ended Dec. 31, the maker of Maggi stock cubes and Nescafe coffee said. Analysts had on average expected organic sales growth of 7.4.

Nestlé finishes the year on a disappointing note, Bernstein analyst Bruno Monteyne said. Guidance for 2024 organic growth of 4.0 is below current consensus of 4.9 and guidance for a moderate margin increase may put pressure on the current margin consensus of 17.7.

However, Nestle39;s net profit rose sharply by about 20 to 11.2 billion Swiss francs 12.76 billion.

The packaged goods industry has for over two years hit shoppers with higher prices, citing higher input costs that started with the COVID19 pandemic and were exacerbated by Russia39;s invasion of Ukraine. Everything from sunflower oil to freight has become more expensive, taking a toll on global supply chains.

This quarter, however, companies have said 2024 prices will rise at a much slower rate.

Pricing will be a…