Nestle (NSRGY), the food and beverage giant, has announced its nine-month sales figures. Organic growth year-to-date is 3.3%, up from 2.0% at the same time last year. The company also boasted a third-quarter 1.5% rise in real internal growth (RIG), which is a measure of sales volumes. That beat analysts’ expectations of a 0.3% increase. On the Frankfurt stock exchange, Nestle stock (DE:NESM) has risen 6.8% on the news.
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Stating his commitment to improving sales further, Philipp Navratil, the company’s CEO, confirmed the company’s full-year guidance. Along with that, the company announced a planned reduction in headcount of 16,000 employees over the next two years. That includes 12,000 white-collar workers, which will bring a billion CHF of annual savings. In addition, 4,000 employees in Nestle’s manufacturing and supply chain divisions will be laid off. The job cuts will occur across geographies and job functions, according to Anna Manz, the CFO.
Is Nestle Performing Well?
Year-to-date, Nestle stock has risen 19.1%. Additionally, NSRGY has paid a dividend to investors for at least 25 years, and has stated its commitment to continue doing so.
