Nestle(US:NSRGY) 2 1 Shi Ji Jing Ji Bao Dao·2025-09-19 23:18Core 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 due to a violation of the company's code of conduct [1][2][5]. Leadership Changes - Paul Bulcke announced his early resignation to facilitate a smooth transition for Pablo Isla and Philipp Navratil to advance Nestlé's strategy [1]. - Dick Boer will become the new lead independent director and vice chairman of the board, while Marie-Gabrielle Ineichen-Fleisch will serve as vice chairman [1]. Strategic Focus - Under Laurent Freixe, Nestlé initiated a major reform focusing on three key areas: operational efficiency aiming for an additional cost savings of at least 2.5 billion Swiss francs by the end of 2027, increasing advertising and marketing investments to 9% of sales by 2025, and enhancing capabilities to become a fully interconnected enterprise [2][3]. Market Adjustments - The restructuring includes a significant change in the geographical market organization, with the Greater China Region being merged back into the Asia, Oceania, and Africa region starting in 2025 [3]. - The new leadership team in China is expected to continue the strategic focus on the market, with a commitment to invest resources for growth [4][5]. Performance Metrics - Nestlé's sales in the Greater China Region fell to 2.47 billion Swiss francs in the first half of the year, a decline of 6.4% compared to the previous year [8]. - Overall, Nestlé's revenue decreased by 1.8% to 44.228 billion Swiss francs, with net profit down 10.3% to 5.065 billion Swiss francs [9]. Future Outlook - The new management's commitment to maintaining the existing strategic direction and performance improvement plans is crucial as the company navigates through this transition [7][10].