Nestlé SA, listed as NSRGY.PK and NSTR.L, a leading Swiss food and beverage corporation, has announced its objective to achieve additional cost savings totaling a minimum of 2.5 billion Swiss francs by the conclusion of 2027.
The company intends to elevate its investment in advertising and marketing to 9% of sales by the end of 2025, a move aimed at spurring growth. The financial resources necessary for this enhancement will be procured through cost optimization and capitalizing on growth opportunities.
As part of a strategic initiative to boost operational efficiency and maximize potential, Nestlé will establish its water and premium beverage sectors as an independent global unit. Leadership for this venture will fall under Muriel Lienau, currently the Head of Nestlé Waters Europe, commencing January 1, 2025.
Nestlé asserts that this strategic action plan will enable the company to achieve superior, sustainable, and profitable growth. In the medium term, the firm anticipates organic sales growth of over 4% in a stable operating environment, with an underlying operating profit margin exceeding 17.0%.
The company has reaffirmed its projections for 2024, predicting organic sales growth of approximately 2%, an underlying trading operating profit margin around 17.0%, and underlying earnings per share remaining relatively stable when adjusted for constant currency.
Looking forward to 2025, Nestlé expects an uptick in organic sales growth compared to 2024, though it anticipates the underlying trading operating profit margin to be slightly below the guidance provided for 2024.
