Food giant Nestle said it expects an improvement in sales and profitability in the second half of 2018, with its infant formula business helping second-quarter results.
Packaged food groups have seen sales slow as health-conscious consumers switch to fresh, local foods.
Nestle has also come under pressure from New York-based hedge fund Third Point, run by investor Daniel Loeb, asking for a bolder and faster overhaul at the world's biggest food group.
Solid growth in Europe and Asia and an improvement in the sluggish US market and in China as well as in infant nutrition led Nestle to better-than-expected sales in the second quarter.
Nestle's net profit increased by 19% to 5.8 billion Swiss francs and earnings per share jumped by a fifth, helped by a one-off gain linked to the sale of its US confectionery business.
But the company narrowed its guidance for 2018 organic growth to "around 3%" from a 2-4%.
"As we look towards the second half of 2018, we expect further improvement in our organic revenue growth.
"Margin improvement is expected to accelerate with further benefits from our efficiency programmes and more favourable commodity pricing," Mark Schneider, CEO of the maker of KitKat chocolate bars and Nescafe instant coffee, said.
Organic sales growth that strips out currency swings and portfolio changes slowed less than expected to 2.6% in the second quarter, from 2.8% in the first quarter, beating forecasts for 2.2% growth in a Reuters poll.
Nestle said its sales by volume rose by 2.4% in the second quarter, but prices rose by just 0.2% as retail partners, under pressure from discounters and online rivals, fight to keep costs down.
The trading operating margin before restructuring costs rose to 16.1% in the first half, as operational efficiencies offset higher commodity, packaging and distribution costs.
The company has set a 2020 target of 17.5-18.5% target which Third Point has criticised as less ambitious than peer Unilever.
Unilever posted disappointing quarterly sales growth of 1.9% last week, but said it expected growth to accelerate in the second half due to price rises.
