Nestlé CEO reassures the market

10. June 2024
-IAM, News

Daniel Pfund, Senior Financial Analyst

Last week, Nestlé CEO Mark Schneider spoke at a conference organized by JP Morgan. His comments largely reassured investors, sending the share price up by over 3% on the day.

The company had been reporting disappointing results for several quarters. Indeed, successive price hikes had led to a drop in demand, pushing sales volumes into negative territory. According to the CEO, volume growth should accelerate in the coming quarters, and the company confirms its ambition to grow organically by 4% in 2024.

Nestlé is also developing new products for obese patients taking GLP-1 agonist drugs. These new products support patients by providing them with more protein, as one of the side effects often seen with weight loss is also muscle loss. Other innovations are also underway in the coffee and pet food segments, the Group’s 2 fastest-growing segments.

Overall, these messages are reassuring, even if the share price is still well below its highs. Investors remain cautious, awaiting concrete results to be published on July 25.