By Alexander Marrow
(Reuters) -Nestle reported better-than-expected sales growth and volumes on Thursday and maintained its outlook for 2025 as the world’s largest packaged food company reported results for the first time since appointing Philipp Navratil as CEO.
Navratil, the former head of Nespresso, replaced Laurent Freixe, who was fired in September as chief executive over an undisclosed relationship with a direct report.
Nestle has endured an unprecedented period of managerial turmoil, with Chairman Paul Bulcke stepping down early to make way for former Inditex chief Pablo Isla just two weeks after Freixe’s dismissal.
The Swiss maker of KitKat chocolate bars, Nespresso coffee and Maggi seasoning has been fighting to reignite stalling sales growth and arrest a 40% share price slide since 2022 as costs have risen and debt levels have climbed amid rising investor pressure.
A 1.5% rise in real internal growth (RIG) – a measure of sales volumes – in the third quarter, well above analysts’ expectations of a 0.3% rise, may give Navratil some breathing space as he looks to make his mark on the company following his abrupt promotion to the top job.
Navratil said that driving RIG-led growth was Nestle’s top priority and that the company would reduce headcount over the next two years as it tries to change faster.
Nestle has also raised its costs savings target to 3 billion Swiss francs ($3.77 billion) by the end of 2027, he said.
“We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded,” Navratil said in a statement. “The world is changing, and Nestlé needs to change faster.”
($1 = 0.7955 Swiss francs)
(Reporting by Alexander MarrowEditing by Dave Graham)
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