SWITZERLAND | Nestlé S.A. held a Capital Markets Day for investors and analysts focused on 'Accelerating Nestlé'.
Nestlé’s action plan will allow the company to drive category growth and improve market share performance. Presentations outlined a clear action plan to drive the performance and transformation of Nestlé and shape its long-term future.
"Nestlé is a strong company with global reach, exceptional demand generation and in-market capabilities. We have a diverse and strategically well-positioned product portfolio. Our iconic brands and innovative products connect with people daily, at every stage of their lives,” said Laurent Freixe, Nestlé CEO.
“These strengths give us a unique advantage and position us to win in the marketplace. We will now invest further in our brands and growth platforms to unlock the full potential of our products for our consumers and customers. Our action plan will also improve our operations, making us more efficient, responsive, and agile.”
Freixe added that this would allow them to deliver value to all stakeholders.
“I am confident that we can deliver superior, sustainable, and profitable growth and gain market share while transforming Nestlé for long-term success."
Actions will include targeted investments in winning brands and growth platforms, more focused innovation activities to drive more significant impact, and systematically addressing underperformers.
Nestlé will step up investment in advertising and marketing to support growth. Cost savings and growth leverage will generate the necessary resources.
In addition to the ongoing programs, Nestlé has aimed to deliver incremental cost savings of at least CHF 2.5 billion by the end of 2027. Work has already begun on critical initiatives across procurement, commercial investments, and structural costs.
Nestlé will also accelerate its digital transformation to be a real-time, end-to-end connected enterprise powered by data and artificial intelligence. It also ensured that sustainability is embedded into its activities.
As part of the action plan to drive operational performance and unlock potential, Nestlé's water and premium beverages activities will become a global standalone business under Muriel Lienau, Head of Nestlé Waters Europe, as of January 2025.
The new management will evaluate the strategy for this business. This will include exploring partnership opportunities to enable Nestlé's iconic brands and growth platforms to achieve their full potential.
Nestlé's action plan will allow the company to deliver superior, sustainable, and profitable growth. In the medium term, organic sales growth is expected to be four percent plus its typical operating environment, with an underlying operating profit margin of 17 percent.
Looking ahead to 2025, Nestlé expected an improvement in organic sales growth compared to 2024, with the underlying trading operating profit margin anticipated to be moderately lower than the 2024 guidance.
