Nestlé (NSRGY.US) reported better-than-expected sales growth on Thursday, primarily driven by revenue increases from its candy and coffee products due to price hikes. The company's reported internal growth rate (RIG), a measure of sales volume, rose by 1.5%, significantly surpassing analysts' expectations of a 0.3% increase. Nestlé indicated that organic sales, excluding the effects of currency fluctuations and acquisitions, grew by 4.3% in Q3, outperforming analysts' predictions of 3.7% growth. The company reiterated its outlook for 2025, emphasizing that organic sales growth should improve compared to 2024 and expects its core operating margin to reach or exceed 16%. This announcement marks the first sales report since Philippe Nau, who previously led the Nespresso business, took over as CEO following the dismissal of former CEO Laurent Freixe due to undisclosed relations with a subordinate. Nestlé has experienced an unprecedented period of leadership upheaval, with Chairman Paul Bulcke stepping down early, only to be succeeded by former Inditex CEO Pablo Isla two weeks later. This performance may provide some breathing room for Nau as he seeks to make his mark. Amid rising costs, escalating debt levels, and increased pressure from investors, the Swiss company, known for its KitKat chocolates, Nespresso coffee, and Maggi seasonings, has been striving to revive stagnant sales growth and stem a sharp decline in its stock price. Nau emphasized that driving growth primarily through actual internal growth is Nestlé's top priority. The company will proceed with layoffs, raising its cost-saving target from CHF 2.5 billion to CHF 3 billion (approximately $3.77 billion) by the end of 2027. In a statement, Nau said, "We are cultivating a culture that embraces performance thinking, rejecting market share loss, and rewarding successful outcomes. The world is changing, and Nestlé needs to transform at a faster pace." Nestlé plans to eliminate 16,000 jobs as part of a series of initiatives aimed at revitalizing the Swiss food manufacturer. This includes cutting 12,000 white-collar positions and an additional 4,000 jobs as part of ongoing improvements in manufacturing and supply chain operations. With approximately 277,000 employees globally, the job cuts will represent about 6% of its workforce, to be completed over the next two years. Nau stated in a Thursday announcement, "The world is changing, and Nestlé needs to transform at a faster pace. This will involve difficult yet necessary layoff decisions over the next two years."