|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||N/A - N/A|
|52 Week Range||undefined - undefined|
|PE Ratio (TTM)||N/A|
|Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Nestlé has for the first time set a target for increasing profit margins, marking a significant shift from its traditional sales-focused model as the Swiss company reacts to competitive pressures facing ...
LONDON/ZURICH (Reuters) - Nestle (NESN.S) set a profit margin target for the first time on Tuesday, responding to an industry slowdown and pressure from activist investor Third Point for greater near-term returns from the world's largest packaged food company. Investors were looking for Nestle's new chief executive Mark Schneider to demonstrate that it has a strong strategy to improve performance following four years of missing sales targets as the food sector's growth cools. While many multinationals turned to cost-cutting, inspired by industry-leading margins at Kraft-Heinz (KHC.O), Nestle and rival Unilever (ULVR.L) had argued that cutting too deep to deliver margin growth is a short-term solution.
Nestlé set a new profit-margin target and said it would accelerate share buybacks amid pressure from activist investor Dan Loeb, but remained firm on retaining its stake in cosmetics giant L’Oréal.