Nestlé is to slim down its management after releasing disappointing results for the first nine months of the year. The Swiss company says consumer demand has weakened in the past months.
Down to five
Worse: CEO Laurent Freixe expects that demand to stay low for a while. This causes Nestlé to lower its sales forecasts from at least 3 % (organic growth) to just 2 %. Profit margins are expected not to exceed op 17 %.
Many key figures remained below expectations, including the sales growth of 2 % in the first nine months of 2024, as well as price increases (1.6 %, compared to analyst forecasts of 1.7 %). Volume growth of 0.5 % was disappointing as well; volumes even decreased in both North and South America, but Nestlé was saved by a slight increase in Europe and the emerging markets.
Freixe, who succeeded CEO Mark Schneider last month, has decided to slim down his management. Nestlé will merge its Latin American and North America divisions, as well as the four that currently serve Greater China, Asia, Oceania and Africa. The organisation for Europe, Nespresso and Nestlé Health Science remain as they were.
