REG - Nestle SA Nestle Holdings Inc - Nestlé Capital Markets Day

Nestle SAAnnouncement

19/11/2024 07:00

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RNS Number : 7683M  Nestle SA  19 November 2024

Nestlé press release

 

 

Follow today's event live

 

08:30 CET Capital Markets Day webcast:

https://edge.media-server.com/mmc/go/2024-Nestle-Capital-Markets-Day/

 

Full details:

https://www.nestle.com/media/mediaeventscalendar/allevents/2024-capital-markets-day

 

 

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[Ad hoc announcement pursuant to art. 53 SIX Listing Rules]

 

Vevey/Switzerland, 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.

 

Nestlé will also accelerate its digital transformation to be a real time,
end-to-end connected enterprise, powered by data and artificial intelligence.
It is additionally ensuring that sustainability is embedded into its
activities.

 

As part of the action plan to drive operational performance and unlock
potential, Nestlé's water and premium beverages activities will become a
global standalone business under the leadership of Muriel Lienau, Head of
Nestlé Waters Europe, as of January 1, 2025. The new management will evaluate
the strategy for this business. This will include exploring partnership
opportunities to enable Nestlé's iconic brands and growth platforms to
achieve their full potential.

 

Nestlé's action plan will allow the company to deliver superior, sustainable
and profitable growth. In the medium term, organic sales growth is expected to
be at 4% plus in a normal operating environment, with an underlying operating
profit margin 17.0% plus.

 

Nestlé confirms 2024 guidance, with organic sales growth of around 2%,
underlying trading operating profit margin of around 17.0% and underlying EPS
broadly flat in constant currency. Looking ahead to 2025, Nestlé expects an
improvement in organic sales growth compared to 2024, with the underlying
trading operating profit margin anticipated to be moderately lower than the
2024 guidance.

 

 

 

 

Contacts

 

Media

 

Christoph Meier

Tel.: +41 21 924 2200

mediarelations@nestle.com

 

Investors

 

David Hancock

Tel.: +41 21 924 3509

ir@nestle.com

 

 

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