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Breakingviews: Nestle -- too broad to manage?

Thursday, August 08, 2013 - 04:24

Aug. 8 - The Swiss food group indicates it may fall short of long-term revenue growth targets. Reuters Breakingviews EMEA Editor Chris Hughes asks if Nestle's diverse portfolio has become too broad to manage?

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Business week too big to manage and why come -- fronts recovery looks more convincing. Chris uses voice breaking views of me and it's a joins event. Are now let's keep it -- domestic and isn't good. A case of too big to -- too many big. Divest units or was it the weak consumer story. With a bit of but it business community the -- let's play it like many companies and finding. The emerging markets on the all. A and freelancers who like in terms of the liberating. In really decent right when you go develop markets slowing. For the most McChrystal -- about. About Nestle's ability to really get the best out of its operations. When it is -- taken with the 200 billion dollar market cap company will -- -- making sure that you I'm getting them that the best out of its operations. Is fuel environment we can I think is a question investors need to thought. I'm asking -- I thought this is not as if the company hasn't set itself up for this question and it's itself. Set the -- didn't finish five to 6%. Revenue would ask him well no quiet I mean in the first half that -- the vote four point 1% the previous got a really nice it's. In the second -- hasn't -- today. To categorically say it's gonna minutes but their house that is going to be a stretch and it is going to be a stretch for it and it may be that book. Maybe that's something they consultant -- a -- I may be more so what do you suggest. Series of businesses. Not while it in -- can counsel of the extreme thing hopes he would be a breakup but if you got. It is going to be assistance beliefs of management time right now what you do wonder whether it needs. Great management discipline and focus. In maybe some sort of reorganization in terms of in the the management structure of the business because it when you get -- it's always gonna be hard to. Or the wholesome girl must've written article was -- you know -- In eight. Maintaining. Discipline the local level of the -- level. That is in in terms of each individual segment is going to be critical book that slams against the. Okay I'm another bank comments bank it's messed. In Q2. Investment banks -- -- but some it is seen -- -- -- than than than its peers in front felicity towards. As a -- in the cadet it's actually making progress in terms of -- isn't comfortable I -- it's a real. You know when -- for the numbers it's. Broke with. These European empires that are undergoing restructuring in particular of the kinds of homeless and is a real massive charges in this is. Is looks like apparently it really is in the middle of -- painful transition but chose not to -- today and it's just because I thought he's got a certain times of the bill that the key things that were being promised fund management. If -- are starting to deliver I think there is there's that there is it of them the problem the coma this is how that. Has just been such a convincing investors who look in his they can actually in that can deliver organic thing and -- and there are etc. I -- -- -- and I was I was fat issue in terms of attorneys who have the trust homeless isn't getting on Monday and and no inflict another disappointment on -- From from the Iowa. But. Is improving and I think -- think any of that doesn't mean to operationally. This business is going to be transformed by the end of the that got. The big legacy positions that we gonna -- low time. It's used to unwind liquid disposal program obviously it's gonna take time to -- can transform a -- is -- -- -- to see that there is a credible investment cancer. OK very good Chris many things about Chris -- from breaking news for more generous heading inside what's our US show every day 121 -- in new you'll find that seat. In London IMAX the problem is --

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Breakingviews: Nestle -- too broad to manage?

Thursday, August 08, 2013 - 04:24