(RTTNews) - Nestle SA (NSRGY.PK, NSTR.L), a Swiss food and beverage major, said it aims to deliver incremental cost savings of at least 2.5 billion Swiss francs by the end of 2027.
The company plans to increase its investment in advertising and marketing to 9% of sales by the end of 2025 to drive growth. The required funds for this expansion will be sourced through cost savings and leveraging growth opportunities.
As part of the action plan to drive operational performance and unlock potential, Nestle's water and premium beverages activities will become a global standalone business under the leadership of Muriel Lienau, Head of Nestle Waters Europe, as of January 1, 2025.
Nestle said its 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.
Nestle confirmed 2024 guidance, with organic sales growth of around 2%, underlying trading operating profit margin of around 17.0% and underlying earnings per share broadly flat in constant currency.
Looking ahead to 2025, Nestle 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.
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