In This Article:
[Ad hoc announcement pursuant to Art. 53 LR]
This press release is also available in Français (pdf) and Deutsch (pdf)
Follow today's event live
08:30 CET Capital Markets Day webcast
Full details on our website
.............
Vevey, November 19, 2024
Capital Markets Day: Nestlé presents plan to fuel and accelerate growth
-
Clear plan to drive operational excellence, unlock the full potential of the portfolio and strengthen foundational capabilities.
-
Investment in advertising and marketing to be stepped up to 9% of sales by the end of 2025 to support growth.
-
Cost savings of at least CHF 2.5 billion above existing initiatives by end 2027 to fund increased investments.
-
Nestlé's waters and premium beverages activities to become a global standalone business as of January 1, 2025.
-
In the medium term, organic growth is expected to be 4% plus in a normal operating environment, with an underlying trading operating profit margin of 17.0% plus.
Nestlé S.A. is today holding a Capital Markets Day for investors and analysts focused on 'Accelerating Nestlé'. The presentations outline a clear action plan to drive the performance and transformation of Nestlé and to shape its long-term future.
Laurent Freixe, Nestlé CEO, commented: "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 every day, at every stage of their lives. 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 our customers.
Our action plan will also improve the way we operate, making us more efficient, responsive and agile. This will allow us to deliver value for all our stakeholders. I am confident that we can deliver superior, sustainable and profitable growth and gain market share, while transforming Nestlé for long-term success."
Nestlé’s action plan presented today will allow the company to drive category growth and improve market share performance. Actions will include targeted investments in winning brands and growth platforms, more focused innovation activities to drive greater impact, and systematically addressing underperformers. Nestlé will step up investment in advertising and marketing to support growth. The necessary resources will be generated through cost savings and growth leverage. In addition to the ongoing programs, Nestlé aims to deliver incremental cost savings of at least CHF 2.5 billion by the end of 2027. Work has already begun on key initiatives across procurement, commercial investments and structural costs.