Nestle S.A. (OTC:NSRGF, VTX:NESN) chief executive Mark Schneider is to step down and be replaced by company veteran Laurent Freixe after eight years at the helm of the consumer goods giant.
This comes as the Kit Kat maker struggles to grow sales, with shares in the company having been on a downward trajectory since May 2023.
Freixe will take over from September, having worked at the business since 1986 and led its European and businesses across the Atlantic.
Deutsche Bank analysts said “We expect the skill set of the incoming chief executive to be more suited to the needs of Nestle at this time and at the moment we don't see a big one-off margin reset”.
However, noting the company also had a new chief financial officer, Deutsche added: “This is a time where any higher investment or change in accounting practices may be viewed by the market as resetting margin expectations.”
Nestle fell on Friday morning following the news.