Nestlé rallies after guidance and strategy update

[Facade of the French headquarters of Nestlé, Issy-les-Moulineaux, France]
HJBC

Nestlé (OTCPK:NSRGY [https://seekingalpha.com/symbol/NSRGY]) (OTCPK:NSRGF [https://seekingalpha.com/symbol/NSRGF]) released its nine-month sales update on Thursday and reaffirmed its full-year 2025 guidance while unveiling a major cost transformation plan under new CEO Philipp Navratil.

The company maintained its full-year outlook, saying it expects organic sales to improve from 2024's rate of 2.2%. Management also anticipated margin stability, despite currency and inflation headwinds. Nestle (OTCPK:NSRGY [https://seekingalpha.com/symbol/NSRGY]) plans to make continued investment in growth areas even amid macroeconomic uncertainty.

CEO Philipp Navratil said driving RIG-led growth is the company's number one priority. "We have been stepping up investment to achieve this, and the results are starting to come through. Now we must do more and move faster to accelerate our growth momentum," he added. The plan is to be rigorous in the approach to resource allocation, prioritizing the opportunities and businesses with the highest potential returns. "We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation," Navratil highlighted.

Nestlé (OTCPK:NSRGY [https://seekingalpha.com/symbol/NSRGY]) (OTCPK:NSRGF [https://seekingalpha.com/symbol/NSRGF]) said it would slash 12,000 white-collar jobs and an additional 4,000 manufacturing and supply-chain positions to reduce the global workforce by 6% over the next two years. Some white-collar roles will be automated as the reset.

Shares of Nestlé (OTCPK:NSRGY [https://seekingalpha.com/symbol/NSRGY]) rallied more than 9% in U.S. trading.

MORE ON NESTLÉ S.A.

* Nestlé S.A. (NEST:CA) Q3 2025 Sales Call Transcript [https://seekingalpha.com/article/4830356-nestle-s-a-nest-ca-q3-2025-sales-call-transcript]
* Nestlé S.A. (NEST:CA) Nine Months 2025 Sales/ Trading Statement Call - Slideshow [https://seekingalpha.com/article/4830324-nestle-s-a-nest-ca-nine-months-2025-sales-trading-statement-call-slideshow]
* Nestlé S.A. (NEST:CA) Presents At Barclays 18th Annual Global Consumer Staples Conference 2025 Transcript [https://seekingalpha.com/article/4818990-nestle-s-a-nest-ca-presents-at-barclays-18th-annual-global-consumer-staples-conference-2025]
* Nestlé signals possible divestments in vitamins unit amid strategic review [https://seekingalpha.com/news/4471182-nestle-signals-possible-divestments-in-vitamins-unit-amid-strategic-review]
* Nestlé S.A. Non-GAAP EPS of CHF 2.27, revenue of CHF 44.23B; reaffirms fY25 outlook [https://seekingalpha.com/news/4471148-nestl-sa-non-gaap-eps-of-chf-227-revenue-of-chf-4423b-reaffirms-fy25-outlook]