Nestle Lowers Growth Forecast Amid Scandals

Nestle has revised its sales growth expectations down to 2% for 2024, following a challenging year marked by weakened consumer demand and product scandals. New CEO Laurent Freixe, who replaced Mark Schneider in September, is implementing a leadership restructure to address these issues, including combining the Latin America and North America divisions. Analysts describe this adjustment as a 'painful reset' for the company, which had already lowered its forecast from 4% to 3% in July. The company faces the task of reviving its core brands and regaining market share as consumers opt for cheaper alternatives amid high inflation. In India, Nestle reported a slight drop in quarterly profits, despite some brands achieving double-digit growth. The transition in leadership and strategic changes aim to restore investor confidence and improve performance.