Shares of Nestlé fell by as much as 2.3% in early Swiss trading, contributing to a year-to-date decline of about 16%.
The company’s newly appointed CEO, Laurent Freixe, who took over from Mark Schneider in September, has introduced several organizational changes, including a streamlined executive board and fewer geographical zones to improve decision-making. However, analysts at Bernstein expressed concern, noting that it is unclear how these changes will boost market share or performance.
Nestlé's sales in North America contracted by 0.3% in the first nine months of the year, while Latin America was impacted by high interest rates, leading retailers to reduce inventory. The company also reduced its full-year targets for underlying earnings per share and profitability, with the operating profit margin now expected to be around 17%, slightly below last year's 17.3%.
Despite the challenges, Freixe highlighted that key product areas such as pet food, nutrition, and coffee are well-positioned for future growth. Further updates on 2025 targets are expected at an investor seminar on November 19.
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