ZURICH (Reuters) - Nestle (NESN.S) said its management and board were delivering results after the world’s largest packaged food maker came under renewed pressure from activist shareholder Third Point to be bolder and faster in its overhaul.
The maker of KitKat chocolate bars and Nescafe instant coffee is currently implementing an “accelerated long-term value creation strategy,” it said in a statement on Monday without referring directly to Third Point.
Nestle highlighted its transition to a new chief executive, focus on high-growth, high-margin products, revenue growth, investments in brands, and innovation among the steps it has taken.
“The company is on track to meet its 2020 goals for margin improvement, operating profit, and structural cost savings,” it said in a statement.
The response came after Third Point, a New York-based hedge fund, sent a letter to Nestle’s board and published a presentation online on Sunday calling for more urgent action and recommending steps it says could result in Nestle doubling its earnings per share by 2022.
Reporting by John Revill; editing by Brenna Hughes Neghaiwi