The Swiss giant released its third-quarter report today, which painted a depressing picture due to lower-than-expected sales, mainly due to lagging consumer demand.
Organic sales in the first nine months of this year remained stable at 2%. This is mainly due to prices which stood at 1.6%.
This reflects the challenges the packaged food sector has faced in recent years. The COVID-19 pandemic and the war in Ukraine have both contributed to rising costs for raw materials, transportation and energy.
Laurent Freixe, recently appointed CEO who replaced Mark Schneider at the beginning of this year, gives his first financial update..
Freixe said this morning that "consumer demand is weaker than it has been in recent months and we expect demand to weaken."
Nestle's organic sales expected to fall
We have revised our full-year guidance and organic sales are expected to remain around 2.1TP3Q, in line with what we observed in the first nine months.
This revision comes after a downward adjustment in July, from 4 % to at least 3 %, and an operating profit margin currently being negotiated at 17 %, against 17.3 % in 2023.
Shares have fallen 17.5% year-to-date on a downgrade in expectations.
Freixe, however, remains confident that the company has the right tools and portfolio to continue its upward trajectory.
He said Nestlé was uniquely positioned in the industry to succeed, given its global reach, portfolio of iconic products and brands, and our innovative products, which connect people at all stages of life and in everyday life.
The company would build on its strong foundations, sharpen its customer and consumer focus and increase its market share by advancing across its various categories.
He said that "for our brands to succeed in the market, we need to invest." We will be able to generate resources through efficiency and growth.
Nestlé Europe's third quarter sales performance
Performance in Europe was slightly better, with organic growth increasing slightly to 3.3 %. Price growth was 2.5 %, despite a sales decline of 1.8 %.
Pet food, portioned coffee and confectionery were the best performing European markets. Water and candy lagged behind.
The company will benefit from a simplified management team as it achieves its growth objectives. Steve Presley will lead the new Americas region, which is a merger of Latin America and North America.
David Zhang, who was president of Greater China, would step down as CEO, and Greater China will be merged with Asia, Oceania and Africa. Remy Ejel will lead the merger.
The European Union would not change, but heads of key divisions would report to Freixe so he can focus on improving performance.
Freixe said a leaner executive committee structure and increased collaboration among team leaders at headquarters would increase the simplicity of decisions, accelerate the pace and strengthen momentum.
English 
French