FDBusiness.com

Nestlé Outlines Value Creation Plans

 Breaking News
  • The Price is Right For 77% of Brits Earning £50,000+ Who Shop at Food Discounters Latest research from Mintel finds better off British shoppers are flocking to UK food discounters. Indeed, today, as many as 77% of British consumers with a household income of £50,000 or more visit food discounters, compared to 73% of those with a household income of £15,500 or less. And it appears that premium products are pulling [...]...
  • Mackays Invests £3.8 Million in Major Expansion Scotland’s largest producer of marmalade and jam, Mackays, is set to embark on a major multi-million pound investment that will see its business premises grow by 50%. Starting in January 2018, the £3.8 million expansion will allow the company to introduce new product lines into its existing factory as well as create a dedicated distribution [...]...
  • A Healthy Business Choice – Demineralized Whey Powder Demineralized whey powder is an economical and healthy ingredient which is used across many food and dairy products. Growing consumer demands for infant formula and sports nutrition products in particular mean this highly beneficial product is seeing intensified production levels. SPX FLOW offers customers expertise, experience and state-of-the-art technology for efficient and safe demineralized whey [...]...
  • Ferrero to Acquire US Confectionery Company Ferrero Group is acquiring Ferrara Candy Company, the third largest non-chocolate confectionery company in the US, from L Catterton, the biggest and most globally consumer-focused private equity firm in the world. The terms of the transaction were not disclosed. Ferrara is best known as the maker of iconic brands such as Trolli, a leader in [...]...
  • Shift to Sustainable Food System in Europe is Possible – But Faces Challenges Making Europe’s production, consumption and trade in food environmentally sustainable is possible, but it will require a major shift in public attitudes, policies and knowledge and seizing current opportunities for change, according to a newly published European Environment Agency (EEA) report. The EEA report ‘Food in a green light,’ analyses the challenges Europe faces in shifting [...]...

Nestlé Outlines Value Creation Plans

Nestlé Outlines Value Creation Plans
September 27
15:52 2017

Nestlé has outlined its strategy for sustainable value creation and detailed how it will reach its mid-single digit organic growth target by 2020. The world’s largest food group has also raised its underlying trading operating profit margin target from 16.0% in 2016 to 17.5% to 18.5% by 2020.

Nestlé plans to accelerate organic sales growth, building on its industry-leading volume growth, by capitalizing on recent key consumer trends in categories and markets around the world. Food and beverages remain core to the company’s strategy, with a continued focus on nutrition, health and wellness enabling the company to meet changing consumer demands. Nestlé’s strategy balances growth with increased cost discipline and margin expansion as well as improved capital efficiency.

Mark Schneider, chief executive of Nestlé.

Mark Schneider, chief executive of Nestlé, explains: “Nestlé has a strong foundation, a clear path forward and a bright future. We have a proven track record of delivering sustainable, industry-leading performance. In line with today’s accelerating pace of change, we are intensifying our focus on innovation, operational efficiency, and portfolio management. We will grow by remaining at the forefront of consumer trends and offering the brands and products to meet people’s changing needs, especially their demand for a better, healthier life.”

Nestlé will continue to pursue a value creation model that balances growth in earnings per share, competitive shareholder returns, flexibility for external growth, and access to financial markets. The company will increasingly focus capital spending on advancing the high-growth food and beverage categories of coffee, petcare, infant nutrition and bottled water. It will also build on its strong position in emerging markets and pursue growth opportunities in consumer healthcare.

Nestlé will pursue external growth opportunities that fit within targeted categories and geographies, deliver attractive returns, and build on the company’s leadership positions. Nestlé is actively adjusting its product portfolio in line with this strategy, as shown by the recent investments in Blue Bottle Coffee, Sweet Earth, and Freshly, as well as the decision to explore strategic options for its US confectionery business.

In June 2017, the company announced its intention to make an additional SFr20 billion (€17.5 billion) available for M&A and share buybacks over the next three years. In light of its strong cash generation, Nestlé intends to accelerate buybacks by spreading them evenly over three years. The buyback will augment Nestlé’s previous return of over SFr100 billion to its shareholders over the last 10 years, including SFr43 billion as share buybacks.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 21, 2017Food & Nutrition Conference & Expo 2017
  • October 22, 2017Serbotel
  • October 22, 2017Natexpo
  • November 5, 2017FLEIFOOD 2017
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements