Nestle has lowered its mid-term profitability indicators and will operate its bottled water business independently in an attempt to stimulate sales growth. Nestle has also downgraded this year's forecast for organic sales growth to around 2%, which would be the lowest annual growth rate since 2000. Although sales growth is expected to improve next year, the basic operating profit margin will decline.

Nestle has recently set a target for the operating profit margin of its trade at 17%, down from the previous 17.5% to 18.5%. It is expected that under normal operating conditions, sales will grow by 4% or more, lower than the previous m growth forecast. Nestle also announced plans to cut costs by 2.5 billion swiss franc annually by 2027, but still intends to increase advertising and marketing spending to enhance brand influence.

In addition, starting next year, Nestle will operate its bottled water brands such as Maison Perrier and Acqua Panna independently, led by Muriel Lienau, head of Nestle's bottled water business in europe. Currently, the revenue from the bottled water business accounts for less than 4% and has recently been affected by pollution problems and supply constraints. Management will evaluate the strategic development of this business, including seeking cooperation opportunities.