Ongoing commitment to operational excellence
The company affirmed its commitment to operational excellence across the organization. Going beyond the company’s ongoing cost and productivity improvements, which will remain fundamental, this strategy focuses on continuous improvement ofday-to-day operations, including world-class customer service capabilities as well as enhanced marketing and sales execution.
Reorientation of the organization around growth
To drive its new way of operating, the company outlined tangible actions it will take to reorient the organization around growth. As such, it will focus on building a winning growth culture that more effectively leverages local commercial expertise and enables the business to move with greater speed and agility. With increased investment in talent and capability building, this cultural shift will be complemented by a new employee incentive structure aimed at driving growth.
“Snacking Made Right”
Reflective of its new consumer-centric growth priorities, the company revealed its new tagline and purpose, “Snacking Made Right,” which builds on its promise to offer consumers the right snack, for the right moment, made the right way. This means offering a broad range of delicious, high-quality snacks to satisfy every consumer occasion, with more sustainably sourced ingredients that consumers feel good about.
Long-Term Growth Targets
Based on its comprehensive strategic review and its new strategic framework, the company outlined long-term annual targets and capital allocation priorities including:
| • | | Organic Net Revenue1 growth of 3 percent plus; |
| • | | High-single digit Adjusted EPS1 growth at constant currency; |
| • | | Free Cash Flow1 of $3 billion plus; and |
| • | | Dividend growth outpacing Adjusted EPS growth. |
Luca Zaramella, Chief Financial Officer, stated: “We are confident that our new strategic plan will create sustained long-term shareholder value, by accelerating ourtop-line growth, continuing to focus on productivity gains and improving our cash flow generation. We expect our new strategy to deliver consistent Adjusted EPS growth at constant currency in the high-single digits and strong Free Cash Flow in the years ahead.”