Nestlé Lowers Sales Outlook, Restructures Leadership

Nestlé has announced an organizational overhaul and lowered its full-year sales growth forecast to around 2% due to weak consumer demand, down from previous estimates of 3% and 4%. In the first nine months of 2024, the Swiss food giant reported sales of CHF 67.1 billion, a 2.4% decline compared to the same period last year, with organic sales growth stagnant at 2%. Newly appointed CEO Laurent Freixe attributed the slowdown to a combination of geopolitical tensions and consumer hesitancy towards global brands. The company has also reduced its profit margin expectations, projecting an underlying operating margin of around 17%. Additionally, Nestlé has restructured its executive board and regional markets to streamline operations and improve decision-making processes. As a result of these changes, the company faces significant challenges in reversing its recent performance slump.