Core Viewpoint - Nestlé has appointed Philipp Navratil as the new CEO, replacing Laurent Freixe, who was dismissed due to a violation of the company's code of conduct related to an undisclosed romantic relationship with a subordinate [1]. Group 1: Leadership Change - The board of directors announced the immediate appointment of Philipp Navratil as CEO effective September 1, 2025 [1]. - Laurent Freixe's departure was a result of an investigation into his conduct, which was overseen by the board chairman and an independent director [1]. - Philipp Navratil has been with Nestlé since 2001 and has held various key roles, including leading the coffee strategic business unit and driving growth for the Nespresso brand [1]. Group 2: Previous CEO's Reforms - Laurent Freixe initiated significant reforms during his tenure, focusing on operational efficiency, product portfolio potential, and enhancing foundational capabilities [4]. - He aimed for an additional cost savings of at least 2.5 billion Swiss francs by the end of 2027 and increased advertising and marketing investments to 9% of sales by 2025 [4]. - Freixe's strategy included restructuring the geographical market divisions, merging the Greater China region back into the Asia, Oceania, and Africa region [5]. Group 3: Market Performance and Challenges - The Greater China region's sales declined 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 [8]. - The organic growth rate for the Greater China region was -4.2%, with internal growth at -1.5% and pricing contribution at -2.7% [9]. - Overall, Nestlé's revenue for the first half of the year was 44.228 billion Swiss francs, a decrease of 1.8%, and net profit fell by 10.3% to 5.065 billion Swiss francs [10].

Core Viewpoint - Nestlé has appointed Philipp Navratil as the new CEO, replacing Laurent Freixe, who was dismissed due to a violation of the company's code of conduct related to an undisclosed romantic relationship with a subordinate [1]. Group 1: Leadership Changes - Philipp Navratil has been with Nestlé since 2001, holding various roles, including leading the coffee strategy and driving growth for the Nespresso brand [1][6]. - The board's decision to dismiss Freixe was deemed necessary by Chairman Paul Bulcke, highlighting the importance of corporate governance [1]. - Following Freixe's departure, there are significant personnel changes in the Greater China region, with new leaders appointed to key positions [6]. Group 2: Strategic Focus - Under Freixe's leadership, Nestlé aimed to achieve an additional cost savings of at least 2.5 billion Swiss francs by the end of 2027, enhance marketing investments, and strengthen operational capabilities [2][3]. - The restructuring of the Greater China region into a larger Asia, Oceania, and Africa zone reflects a strategic shift to better support growth in China [3][5]. Group 3: Financial Performance - 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 [7]. - The overall revenue for Nestlé decreased by 1.8% to 44.228 billion Swiss francs, with net profit down by 10.3% [8]. - The organic growth rate for the Greater China region was -4.2%, indicating challenges in the market compared to other regions [7][8].