Nestle(US:NSRGY) 2 1 Shi Ji Jing Ji Bao Dao·2025-09-17 12:07Core Viewpoint - Nestlé is undergoing a significant leadership transition, with Paul Bulcke stepping down and Pablo Isla taking over as Chairman, while Philipp Navratil has been appointed as the new CEO following the dismissal of Laurent Freixe [2][4][5]. Leadership Changes - Paul Bulcke announced his resignation to facilitate a smooth transition for Pablo Isla and Philipp Navratil to advance Nestlé's strategy [2]. - Dick Boer will become the Chief Independent Director and Vice Chairman of the Board, while Marie-Gabrielle Ineichen-Fleisch will serve as Vice Chairman [2]. Reasons for Leadership Transition - Laurent Freixe's dismissal was due to an investigation revealing an undisclosed romantic relationship with a subordinate, violating Nestlé's Code of Business Conduct [4]. Strategic Focus Areas - Under Freixe's leadership, Nestlé initiated a major reform focusing on three key areas: operational efficiency aiming for cost savings of at least 2.5 billion Swiss francs by 2027, increasing advertising and marketing investments to 9% of sales by 2025, and enhancing capabilities to become a fully connected enterprise [5]. Market Adjustments - The restructuring includes a significant focus on the Chinese market, with the Greater China Region being integrated back into the Asia, Oceania, and Africa region starting in 2025 [6][10]. - New leadership appointments in the Greater China Region are being made to support this transition, with Kais Marzouki taking over as CEO [10][12]. Performance Metrics - Nestlé's sales in the Greater China Region decreased to 2.47 billion Swiss francs in the first half of the year, down 6.4% from 2.639 billion Swiss francs in the same period last year [14]. - The overall revenue for Nestlé in the first half of the year was 44.228 billion Swiss francs, a decline of 1.8%, with net profit falling by 10.3% to 5.065 billion Swiss francs [15]. Future Outlook - The effectiveness of the ongoing reforms and the new leadership's ability to maintain strategic direction amidst these changes remains to be seen [9][16].