Nestlé reported 3.3% organic sales growth and positive real internal growth in Q3. New CEO plans to cut 16,000 roles, aiming to save CHF 1 billion annually. Shares up 8%. The focus is on accelerating real internal growth and enhancing results quality. Current share price undervalued with 8% upside potential.

Reduction of 16,000 roles includes 12,000 white-collar positions, expected to save CHF 1 billion annually. Real internal growth improved to 1.5% in Q3. Midterm targets reaffirmed for organic growth of at least 4% and operating margin above 17%. Management changes and competition have affected share price, but new CEO’s priorities aim to set business on the right track.

Read more at Morningstar: New CEO Pushes for Transparency With Target of 16,000 Job Cuts