Nestlé Presents Growth Plan on its Capital Markets Day

Investors and analysts have been invited to Nestlé’s Capital Markets Day for presentations on the company’s action plan to advance the performance and transformation of Nestlé and its long-term future.

Since 1866, the Swiss company has been bringing sweet treats and nutrition to the world. Nestlé operates in 86 countries and sells products in more than 190 of them, from the beloved KitKat to San Pellegrino, employing over 291,000 people globally. Nestlé’s 2023 revenue reached US$103bn, now Nestlé’s stakeholders are looking to the future. 

Driving growth, efficiency and sustainability - Nestlé’s bold action plan

Nestlé’s plan of action will see the company advance category growth and support market share performance. 

To support its growth further, Nestlé will increase investment in advertising and marketing. The required resources will be generated from cost savings and growth leverage. By the end of 2027, Nestlé plans to deliver cost savings of at least US$2.8bn. It has started on key initiatives across:

• Procurement
• Commercial investments 
• Structural costs

Using the latest in AI technology, Nestlé will advance its digital transformation to become a real time, end-to-end connected enterprise. 

Nestlé plans to ensure that sustainability is embedded across its activities, from its frozen food supply chain to its regenerative farming. 

Nestlé's water and beverage activities will become a global standalone business under the leadership of Muriel Lienau, Head of Nestlé Waters Europe, from 1st January 2025. This will include looking at additional partnership opportunities, to assist Nestlé's iconic brands and growth platforms to reach their full potential.

Organic sales growth is expected to be at 4% plus in a regular operating environment, with an underlying operating profit margin 17.0% plus.

Nestlé’s CEO Laurent Freixe shares his vision for growth and market leadership

Nestlé CEO, Laurent Freixe, said he was proud of Nestlé’s iconic brands and innovative products, which are able to connect with people every day, at every stage of their lives. He sees these strengths as being able to give the company a unique advantage and position for them to win in the marketplace. 

"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,” he shared. “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."

Looking to 2025, Nestlé expects to see an improvement in organic sales growth in comparison to 2024, with the underlying trading operating profit margin to be lower than the 2024 guidance.

Just a few months ago, at the 2024 Nestlé International Nutrition Symposium, more than 50 scientists from around the world united to share their scientific views on balanced diets and the link between diets and health. The event took place at Nestlé Research in Lausanne, Switzerland, with a theme: ‘Rethinking the impact of nutrition on health: From nutrients to meals to balanced diets’. This was the 20th anniversary of the first Nestlé International Nutrition Symposium.

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