Nestlé presents growth plan
awp, 19.11.2024 ; DE/EN ; 1 minute
Nestlé's ($NESN (-1,22 %)) new CEO Laurent Freixe presents his plans for the future. The Group wants to drive forward "operational excellence". To this end, he is investing in marketing and cutting costs. According to a statement issued on Tuesday, Nestlé will increase its investment in advertising and marketing activities to 9 percent of sales by the end of next year. This currently stands at around 8 percent. In this way, Nestlé intends to drive growth, as the company announced at its Investor Day on Tuesday.
The company will "make targeted investments in successful brands and growth platforms, focus innovation activities even more strongly in order to achieve a greater impact, and systematically address underperforming areas", according to the statement.
Nestlé intends to achieve the additional investments this will entail through rigorous cost-cutting measures. In addition to the savings activities already underway, management aims to make additional savings of at least CHF 2.5 billion by the end of 2027.
The medium-term targets have been lowered. Nestlé now expects organic sales growth to be "4 percent plus in a normal business environment". The underlying operating profit margin is expected to be "17.0 percent plus".
I am sticking to my position for the long term. No matter how the world turns, people will always eat and drink. In addition, the pumping rights for drinking water are invaluable.
Happy investing!
GG
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EN:
Nestlé presents growth plan
awp, 19.11.2024 ; DE/EN ; 1 minute
Nestlé's ($NESN (-1,22 %) ) new CEO Laurent Freixe presents his plans for the future. The company wants to drive "operational excellence". To this end, he is investing in marketing and cutting costs. According to a statement issued on Tuesday, Nestlé will increase its investment in advertising and marketing activities to 9 percent of sales by the end of next year. This currently stands at around 8 percent. In this way, Nestlé intends to drive growth, as the company announced at its Investor Day on Tuesday.
The company will "make targeted investments in successful brands and growth platforms, focus innovation activities even more strongly in order to achieve a greater impact, and systematically address underperforming areas", it said.
Nestlé intends to achieve the additional investments this will entail through rigorous cost-cutting measures. In addition to the savings activities already underway, management aims to make additional savings of at least CHF 2.5 billion by the end of 2027.
The medium-term targets have been lowered. Nestlé now expects organic sales growth to be "4 percent plus in a normal business environment". The underlying operating profit margin is expected to be "17.0 percent plus".
I am sticking to my position for the long term. No matter how the world turns, people will always eat and drink. In addition, the pumping rights for drinking water are invaluable.
Happy investing!
GG
