Nestlé: aims to improve its margin by 2020.
(CercleFinance.com) - As part of an investor day held in London today, Nestlé has provided an update on its medium-term forecasts.
The group aims to increase its operating margin to 18% by 2020, while share buybacks will be "accelerated". Finally, the group has confirmed its organic growth forecast. However, not a word has been said about L'Oréal... at least in the press release.
The Swiss agri-food giant, which Mark Schneider took charge of at the beginning of the year, confirms that by 2020 it still aims to report “single-digit” average organic sales growth.
How? First, “The company will increasingly focus capital spending on advancing the high-growth food and beverage categories of coffee, petcare, infant nutrition and bottled water,” in addition, Nestlé will 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, while adapting its brand portfolio.
By 2020, the group's recurrent operating margin, which was 16% in 2016, should increase to between 17.5% and 18.5%.
“In line with today's accelerating pace of change, we are intensifying our focus on innovation, operational efficiency, and portfolio management," Mark Schneider said.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The group aims to increase its operating margin to 18% by 2020, while share buybacks will be "accelerated". Finally, the group has confirmed its organic growth forecast. However, not a word has been said about L'Oréal... at least in the press release.
The Swiss agri-food giant, which Mark Schneider took charge of at the beginning of the year, confirms that by 2020 it still aims to report “single-digit” average organic sales growth.
How? First, “The company will increasingly focus capital spending on advancing the high-growth food and beverage categories of coffee, petcare, infant nutrition and bottled water,” in addition, Nestlé will 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, while adapting its brand portfolio.
By 2020, the group's recurrent operating margin, which was 16% in 2016, should increase to between 17.5% and 18.5%.
“In line with today's accelerating pace of change, we are intensifying our focus on innovation, operational efficiency, and portfolio management," Mark Schneider said.
Copyright (c) 2017 CercleFinance.com. All rights reserved.