Nestle Chairman Targets Volume Growth and Water Unit Sales
Chairman Pablo Isla says Nestle must deliver consistent volume growth to boost its share price. The group also plans to sell parts of its water business.
The chairman of the food industry giant NESTLE SA-REG has outlined a strategic shift toward revitalizing sales volumes to drive long-term value. In an interview with the Swiss newspaper Neue Zurcher Zeitung, Pablo Isla emphasized that the company, headquartered in Switzerland, must focus on an adjusted product portfolio and a more robust performance culture to achieve sustainable results. Isla noted that consistent performance is the primary driver for investor confidence and market valuation. > "The key is to consistently deliver volume growth - quarter after quarter, year after year." The chairman further explained that if the company maintains this trajectory, the share price will naturally follow the operational success. Beyond volume targets, Nestle is working to optimize its balance sheet. The company aims to return its leverage ratio to the midpoint of its target range, which is set at two to three times operating profit. As part of this financial restructuring, Isla reiterated the group's intention to divest specific segments of its water business. This move aligns with the broader strategy of refining the portfolio to focus on high-growth categories. Pablo Isla assumed the role of chairman in October, a transition that many investors viewed as a pivotal moment for the company. His leadership follows a period of organizational challenges, and his current focus on volume and performance culture is seen as an effort to instill a fresh sense of direction within the global food conglomerate.
