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Nestle reports third quarter sales growth above analysts'

expectations

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Growth led by higher prices for coffee and confectionery

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Nestle's first quarterly results under new CEO Navratil

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Nestle to reduce headcount in coming two years, says CEO

(Adds bullets, detail in paragraphs 1, 8-9)

By Alexander Marrow

Oct 16 (Reuters) - Nestle reported

better-than-expected sales growth on Thursday thanks to

pricing-led upticks in confectionery and coffee as the world's

largest packaged food company reported results for the first

time since Philipp Navratil became CEO.

Navratil, the former head of Nespresso, replaced Laurent

Freixe, who was fired in September as chief executive over an

undisclosed relationship with a direct report.

Nestle has endured an unprecedented period of managerial

turmoil, with Chairman Paul Bulcke stepping down early to make

way for former Inditex chief Pablo Isla two weeks later.

A 1.5% rise in real internal growth (RIG) - a measure of

sales volumes - in the third quarter, well above analysts'

expectations of a 0.3% rise, may offer Navratil breathing space

as he looks to make his mark following his sudden promotion.

The Swiss maker of KitKat chocolate bars, Nespresso coffee

and Maggi seasoning has been fighting to reignite stalling sales

growth and arrest a steep share price slide as costs have risen

and debt levels have climbed amid rising investor pressure.

Navratil said driving RIG-led growth was Nestle's top

priority and that it would reduce headcount as well as raise its

costs savings target to 3 billion Swiss francs ($3.77 billion)

from 2.5 billion francs by the end of 2027.

"We are fostering a culture that embraces a performance

mindset, that does not accept losing market share, and where

winning is rewarded," Navratil said in a statement. "The world

is changing, and Nestlé needs to change faster."

Organic sales, which exclude the impact of currency movement

and acquisitions, rose 4.3% in the quarter, Nestle said, above

analysts' estimates for 3.7% growth.

The firm maintained its 2025 outlook, underlining that

organic sales growth should improve compared to 2024 and seeing

underlying trading operating profit margin at, or above, 16%.

($1 = 0.7955 Swiss francs)