Nestle : says it is delivering results after activist shareholder attack
July 02, 2018 at 09:51 am
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ZURICH (Reuters) - Nestle said its management and board were delivering results after the world's largest packaged food maker came under renewed pressure from activist shareholder Third Point to be bolder and faster in its overhaul.
The maker of KitKat chocolate bars and Nescafe instant coffee is currently implementing an "accelerated long-term value creation strategy," it said in a statement on Monday without referring directly to Third Point.
Nestle highlighted its transition to a new chief executive, focus on high-growth, high-margin products, revenue growth, investments in brands, and innovation among the steps it has taken.
"The company is on track to meet its 2020 goals for margin improvement, operating profit, and structural cost savings," it said in a statement.
The response came after Third Point, a New York-based hedge fund, sent a letter to Nestle's board and published a presentation online on Sunday calling for more urgent action and recommending steps it says could result in Nestle doubling its earnings per share by 2022.
(Reporting by John Revill; editing by Brenna Hughes Neghaiwi)
Nestlé S.A. is the world's leading agri-food group. Net sales break down by category of products as follows:
- powdered and liquid beverages (26.7%): soluble coffees (Nescafé and Starbucks brands), coffee in capsules (Nespresso), chocolate drinks (Nesquik, Milo, etc.), tea drinks (Nestea), etc.;
- pet food (20.3%): brands such as Purina, Friskies, Felix, etc.;
- pharmaceutical, nutrition and well-being products (16.4%): nutritional supplements (Resource, Boost, Nutren, Optifast, Peptamen brands, etc.), infant and maternal nutrition products (NAN, illuma, Cerelac, Nido, Gerber), ketogenic beverages (BrainXpert), (Nesquick, Fitness, Cheerios, Lion, etc.), etc.;
- ready meals and seasoning products (12.5%): frozen and chilled dishes (Lean Cuisine, Hot Pockets and Stouffer's brands), soups (Maggi), etc.;
- dairy products and ice cream (11.8%): powdered milk, sweetened condensed milk, yoghurt and cream desserts, ice cream (Nido, Nesvita, Carnation, La Laitière, Coffee Mate, Nestlé Ice Cream, Dreyers, Häagen-Dazs, Extrême brands, etc.);
- chocolates, sweets and biscuits (8.7%): Kit Kat, Smarties, Cailler, Terrafertil, etc. brands;
- bottled waters (3.6%): Nestlé Pure Life, Vittel, Perrier, S. Pellegrino, etc. brands.
Net sales are distributed geographically as follows: Switzerland (1.2%), France (3.8%), the United Kingdom (3.8%), Germany (2.4%), Europe (12.8%), the United States and Canada (35%), China (5.9%), Asia and Oceania (21.4%) and Latin America (13.7%).