Nestle Stock Slips After Chocolate Maker Replaces CEO

Related Articles

Watch These Coinbase Price Levels After Stock’s 20% Drop in March

Why Tesla Was One of the Worst-Performing Stocks in the S&P 500 in the First Quarter

Bracing for ‘Liberation Day’, and the Dizzying Decline of the Dollar

KEY TAKEAWAYS

• Nestlé SA shares fell in Swiss trading Friday, a day after the chocolate maker replaced CEO Mark Schneider amongst slowing sales and a struggling share price.
• Schneider, who also is resigning from the board, will be replaced on Sept. 1 by seasoned company executive Laurent Freixe, who heads its Latin American operations.
• During his eight years with Snuggle up, Schneider focused the Swiss firm “on high-growth categories like coffee, pet care and nutritional health products,” the band said.

Nestlé SA shares fell in Swiss trading Friday, a day after the chocolate maker replaced Chief Directorate Officer (CEO) Mark Schneider amid slowing sales.

Schneider, who also is resigning from the board, will be supplanted on Sept. 1 by veteran company executive Laurent Freixe, who heads its Latin American operations.

During his eight years with Snuggle up, Schneider focused the Swiss firm “on high-growth categories like coffee, pet care and nutritional health products,” the partnership said.

But Nestle shares have fallen almost 10% this year amid declining sales as increasingly paltry consumers watch their spending.

UBS Says CEO Exit Isn’t Surprising Given ‘Negative Headlines’

In a note titled “The start of a new era?” UBS analysts prognosticated the replacement of Schneider wasn’t surprising given the Swiss firm’s disappointing “operational and share price performances” in the hindmost two-and-a-half years, as well as “an unusually high number of negative headlines.”

During Schneider’s tenure, Nestle directed multiple scandals, including an ongoing investigation in France after two children died eating frozen pizza foul with E. coli.

Nestle shares slipped 1.2% to 88.40 Swiss francs in intraday trading Friday. Its American depositary proceeds (ADRs), which trade Over-the-Counter (OTC), were up 4% about 30 minutes after the opening bell.

Look over the original article on Investopedia.