Nestle Announces Leadership Overhaul Amid Flat Sales Growth

Nestle has unveiled a leadership revamp and restructuring plan after reporting lower-than-anticipated sales growth for nine months. The company lowered its sales outlook following continued challenges in raising volumes amid price hikes. New CEO Laurent Freixe announced changes aiming to streamline operations and address demands in global markets.

Nestle has announced a significant restructuring of its senior leadership and operational framework as it grapples with underwhelming sales growth reported for the past nine months. The food giant has also slashed its full-year sales forecast, acknowledging difficulties in boosting volumes amidst ongoing price hikes.

The Swiss multinational revealed its expectations for 2024: a 2% organic sales growth and an underlying trading operating profit margin of 17%. These projections mark a downward adjustment from previous forecasts, which promised a minimum 3% growth and a moderate increase in its UTOP margin from 2023's 17.3%.

Newly appointed CEO Laurent Freixe, who took charge in September, cited weakened consumer demand but promised a leaner executive board and the merging of various regional units as part of his strategic initiatives to steer the company back on a growth path.

(With inputs from agencies.)