Nestlé (NSRGY.US) cuts full-year sales forecast as new CEO warns of weak consumer demand

Nestlé (NSRGY.US) is trying to rebuild its market share after consumers lost interest in its brand products due to high prices, and has lowered its sales and profit expectations for the year. The company expects organic sales growth of about 2% in 2024, down from at least 3% previously, it said. Sales grew 2% in the first nine months of the year.

"Consumer demand has weakened in recent months and we expect the demand environment to remain weak," said new CEO Laurent Freixe. Organic growth was weakest in North America, where sales fell 0.3%.

Freixe, who took over in September after a surprise replacement of Mark Schneider in September, is trying to restore confidence among investors after recent setbacks. On Thursday, he announced a series of organisational changes, including streamlining the executive board and reducing geographic regions to speed up decision-making. Managers driving digital and sustainability will also report directly to the CEO, rather than attending the executive board.

Nestlé also lowered its full-year earnings per share and profit targets. The current base operating margin is expected to be around 17%, down from 17.3% a year ago.