Nestle CEO plans to jettison laggards, reduce capex

|About: Nestle S.A. ADR (NSRGY)|By:, SA News Editor

Nestle (NSRGY.PK) CEO Paul Bulcke told investors the company had completed a review of 97% of its 1,800 divisions and has a shortlist of businesses it will try to sell - "laggards it cannot fix," according to Bloomberg.

Analysts have cited Jenny Craig, PowerBar, and Lean Cuisine as candidates for jettison.

The move comes as Nestle delivered its weakest quarterly revenue growth in 4 years. Nestle fell yesterday after Unilever warned of a slowdown in emerging markets, which have been Nestle's main growth driver in the past.

Bulcke also said he plans to limit capex spending to 4-5% versus the previously forecast 5.7%: "Over the last three or four years we have increased our capex quite extensively ... We now want to sweat those assets."