VEVEY (Reuters) – Nestle will step up advertising and marketing, cut costs, split its water and premium drinks business out of the rest of the company, and make other changes to drive growth under new CEO Laurent Freixe, the company said on Tuesday.

The company expects cost savings of at least 2.5 billion Swiss francs ($2.83 billion) by the end of 2027, on top of existing initiatives.

In the medium term, Nestle said it expects organic growth to be more than 4% in a normal operating environment, and an underlying trading operation profit margin of 17%.

($1 = 0.8835 Swiss francs)

(Reporting by Richa Naidu; Editing by Himani Sarkar)