Nestle to streamline organisation after missing sales forecast

As inflation eased, many of Nestle's competitors have slowed price increases hoping to woo back shoppers who turned to cheaper products

Nestle said it now expects 2024 organic sales growth to be around 2% and an underlying trading operating profit (UTOP) margin of about 17%. In July, it cut its organic sales growth forecast to at least 3% and saw a moderate increase in its UTOP margin from 2023's 17.3%. Photo: Dominic Lipinski/PA Wire

Nestle is revamping senior leadership and its operating structure, the food giant said on Thursday, as it cut its full-year sales outlook following weaker-than-expected nine-month underlying sales growth.

The packaged food industry has in recent years struggled with soaring costs as everything from sunflower oil and shipping to packaging, grain, and energy became more expensive during the pandemic and after Russia's full-scale invasion of Ukraine.