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Bulcke said there’s “no major restructuring” planned as a result of the leadership change. | Photo: Reuters
The abrupt replacement of Nestle SA’s chief executive officer was prompted by worries over the food and beverage company’s growth outlook, Chairman Paul Bulcke told Swiss newspaper Le Temps.
“We looked at the market share development and asked ourselves whether the group’s growth engine and operational execution were still working perfectly,” Bulcke said in an interview published on Saturday. “There were difficult times with Covid, geopolitical issues, inflation. We had to act quickly.”
Bulcke didn’t address the firm’s guidance, currently set at an underlying operating margin of at least 17.5 per cent for 2025.
Bulcke said there’s “no major restructuring” planned as a result of the leadership change.
“The focus will be mainly on stimulating the current portfolio and organic growth,” he said. “Mergers and acquisitions are there to complement a strategy to strengthen our portfolio and are not the heart of the strategy.”
First Published: Aug 24 2024 | 6:36 PM IST
