Nestlé’s New CEO Confronts Tough Turnaround Challenges
Friday, 23 August 2024, 12:03
Turning Point for Nestlé’s Leadership
As Laurent Freixe steps in as the new CEO of Nestlé, he inherits a company grappling with substantial performance issues. Investor concerns mount as Nestlé's share price has seen a 16% decline over the past year, notably lagging behind rivals like Unilever.
Challenges Ahead for Growth
- Sales growth predictions have been adjusted from an optimistic 4% to a more modest 3%, indicating struggles in market recovery.
- The recent acquisition of Palforzia led to a $2.1 billion impairment, highlighting the pitfalls of past decisions.
- Price increases contributed significantly to organic growth but face hurdles due to constrained consumer spending.
Freixe's strategy moving forward will need to encompass creating new products and improving the product mix to drive volume increases in a sluggish market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.