Nestle's Strategic Overhaul Amid Stagnant Sales

Nestle is streamlining its leadership and operations, forecasting 2024 organic sales growth of 2%, a drop from prior estimates. Under new CEO Laurent Freixe, adjustments include merging regions and reducing the executive board size, amidst weakening consumer demand and differing input cost dynamics compared to competitors.

Nestle has announced a significant restructuring of its leadership and operational framework, following a downward revision of its sales forecast for the year. The food giant, known for products like Maggi and Nescafe, now anticipates a 2024 organic sales growth of about 2%, down from earlier projections.

Newly appointed CEO Laurent Freixe plans to streamline the company's executive board and merge its North and Latin American divisions, as well as its Greater China and Asia, Oceania and Africa operations. These changes come as Freixe seeks to bolster the company's performance amid softening consumer demand.

Nestle reported a 2% rise in nine-month organic sales for 2024, falling short of analyst expectations of 2.5%. The company also noted that economic pressures, particularly in Latin America, have affected consumer buying patterns, contributing to stagnant sales volumes.

(With inputs from agencies.)