Nestlé aims to deliver incremental cost savings of at least CHF 2.5 billion by the end of 2027
As part of its action plan to enhance operational performance and unlock potential, Nestlé will establish its water and premium beverages operations as a standalone global business, effective January 1, 2025. This new business will be led by Muriel Lienau, the Head of Nestlé Waters Europe. The management team will reassess the strategy for this division, including the exploration of partnership opportunities to help Nestlé’s iconic brands and growth platforms reach their full potential.
Nestlé’s action plan aims to deliver superior, sustainable, and profitable growth. In the medium term, the company anticipates organic sales growth of over 4 per cent in a normal operating environment, with an underlying operating profit margin exceeding 17.0 per cent.
Nestlé’s action plan presented and 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.