Nestlé Shares Plummet as North American Sales Slump and Restructuring Costs Bite

Nestlé's shares plummeted by as much as 7.3% on July 23, marking their biggest intraday drop since 2020. The decline reflects investor disappointment with CEO Philippe Navratil's turnaround strategy, which has been underway for less than a year.

The Swiss food giant reported weak North American sales, with Real Internal Growth (RIG) falling to -0.6% in the region. Company-wide RIG came in at 1.8%, while organic sales growth of 3.7% only marginally beat market expectations.

Nestlé is undergoing a major restructuring, aiming to cut 16,000 jobs globally by the end of 2027 and achieve $3.4 billion in cost savings over two years. As of end-June, the company had achieved 1.7 billion Swiss francs of those savings.