Nestle fulfilled cost reduction plan almost by half

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The cost-cutting plan of the Swiss food company Nestle is almost half done. Developed and approved in 2016, the plan envisages that by 2020, the company's expenditures will decrease by 2-2.5 billion Swiss francs. According to Francois-Xavier Roger, Chief Financial Officer of Dow Jones, at the moment Nestle has reduced total expenses by approximately 1.2 billion francs. The planned reduction in the cost of procurement operations sold by 65%. At the same time, the plan to reduce production costs is fulfilled by only 35%. Roger noted that some enterprises are redeveloped, and every month one factory closes. According to him, the implementation of the plan has helped to significantly improve the company's financial performance. Thus, capital expenditures amounted to 4.2% of revenue versus 5.9% in 2012.

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