UPDATE 2-Nestle restates 2009 guidance, sees better H2
* Repeats organic growth, EBIT margin targets for 2009
* Says water business improved in N.America
* Nutrition business seen better in H2
* No need to renegotiate sale of Alcon stake to Novartis
* Europe head sees commodities, forex markets stabilising
(Adds quotes, details)
ZURICH, June 29 (Reuters) - Nestle AG (NESN.VX), the world's biggest food group, reiterated on Monday its target for 2009 organic sales growth "at least approaching 5 percent", as well as an increase in the operating margin.
"We stick to our guidance we have given but we do see performance weighted to the second half when we have growth coming less from pricing and more from volume growth," Chief Executive Paul Bulcke told an online investor seminar.
He also stuck to a forecast for a rise in the earnings before interest and tax (EBIT) margin in constant currencies.
Bulcke said Nestle sees first-quarter trends persisting in both Europe and North America, with petcare and frozen foods performing well in both regions as consumers eat out less.
"We expect to see that our second-half performance will be slightly better than the first half," chief financial officer Jim Singh said, adding the view was supported by likely better economic conditions and an easier comparison with last year.
Nestle, which is due to post first-half results on Aug. 10, reported organic sales growth, which strips out currency effects and acquisitions, of 3.8 percent in the first quarter.
However, the maker of Nescafe coffee, KitKat chocolate bars and Maggi soup also reported overall first-quarter sales fell 2.1 percent to 25.2 billion Swiss francs ($23.16 billion), undershooting forecasts due to a strong Swiss franc.
Nestle shares were little moved by the presentation, up 0.9 percent at 41.20 Swiss francs at 1519 GMT, in line with a 1 percent firmer DJ Stoxx European food and drinks sector index .SX3P.
Bulcke said Nestle's struggling bottled water business had seen some improvement in North America although western Europe was unchanged despite share gains in some markets. Continued...
