[Ad hoc announcement pursuant to Art. 53 LR]

This press release is also available in Français (pdf) and Deutsch (pdf)

Follow today's event live
09:00 CEST Investor & analyst call - video webcast
Full details on our website

Reports published today
Half-Year Report (pdf)
Other language versions available in Publications

.............

Half-year results 2025: Consistent execution, improving growth foundations

Vevey, 24 July 2025

Laurent Freixe, Nestlé CEO commented: “We are executing our strategy to accelerate performance and transform for the future. We are accelerating our category growth and improving our market share, through better execution and increased investment, funded through a relentless pursuit of efficiency.

These actions are already delivering results, with broad-based growth and a robust profit performance in the first half. Where we are investing to accelerate category growth, we are growing four times faster than the Group, and our six innovation ‘big bets’ achieved sales of over CHF 200 million in the first half. At the same time, we are addressing our 18 key underperforming business cells, and the aggregate growth gap to market has improved by a third. We are also taking decisive measures to strengthen our business in Greater China and focus our Vitamins, Minerals and Supplements business on winning premium brands.

We have maintained our guidance for 2025, while recognizing increased macroeconomic risks and uncertainties. We remain confident that our actions to drive performance and transformation will deliver our medium-term growth and profit ambitions.”

Results performance summary

In millions of CHF, unless stated	H1-2025	H1-2024	Reported change
- Real internal growth (RIG)	0.2%	0.1%	10 bps
*- Pricing*	2.7%	2.0%	70 bps
Organic growth	2.9%	2.1%	80 bps
Net acquisitions/(disposals)	0.0%	- 0.4%	40 bps
Foreign exchange movements	- 4.7%	- 4.4%	- 30 bps
Reported sales growth	- 1.8%	- 2.7%	90 bps
Sales	44,228	45,045	- 1.8%
Underlying trading operating profit	7,287	7,841	- 7.1%
Gross profit margin	46.6%	47.2%	- 60 bps
Underlying trading operating profit margin	16.5%	17.4%	- 90 bps
Net profit ¹	5,065	5,644	- 10.3%
Basic EPS (CHF)	1.97	2.16	- 9.0%
Underlying EPS (CHF)	2.27	2.40	- 5.4%
Free cash flow	2,307	3,978	- 42.0%

¹ Profit for the year attributable to shareholders of the parent

Financial highlights

Broad-based sales growth
H1 organic sales growth (OG) of 2.9%, with real internal growth (RIG) of 0.2% and pricing of 2.7%.
Q2 OG of 3.0%, with RIG of -0.4% and pricing of 3.3%. OG improved compared to Q1 across most businesses.
Pricing actions taken through H1, with low elasticity in coffee and higher short-term impact in confectionery.
Decline in Greater China impacting Group Q2 OG by 70 bps and RIG by 40 bps.
Solid profit performance while stepping up investment
Underlying trading operating profit (UTOP) margin of 16.5%, impacted by inflation in costs of goods sold, step-up in growth investments and currency headwinds.
Net profit of CHF 5.1 billion, basic earnings per share (EPS) down 9.0% to CHF 1.97, free cash flow of CHF 2.3 billion.

Operational and strategic progress

Investing in growth, with focused and consistent execution delivering results
Marketing investment increased, with advertising and marketing expenses reaching 8.6% of sales in the first half of 2025.
Where we are investing to accelerate category growth, we are growing at four times the rate of overall group OG.
Rapid roll-out of six global innovation ‘big bets’ reaching combined sales of over CHF 200 million in H1 2025.
In 18 key underperforming business cells, aggregate growth gap to market improved by a third.
Good progress with CHF 2.5 billion Fuel for Growth cost savings program
On track to achieve target of CHF 0.7 billion savings in 2025, with over CHF 150 million recognized in the P&L in H1 and an additional CHF 350 million already secured for H2.
Taking steps to strengthen growth profile in Greater China and Nestlé Health Science
Taking action in Greater China to improve performance; measures will be a growth headwind for up to a year.
Focusing the Vitamins, Minerals and Supplements (VMS) business on premium brands, launching strategic review of our mainstream and value brands.
Simplifying our organization and digitally transforming our end-to-end processes
Leveraging Nestlé’s scale, single enterprise resource planning (ERP) core and data foundations, and expanding our AI platforms to support decision-making, execution and efficiency.

2025 guidance

2025 guidance maintained, despite factoring in increased headwinds.
Organic sales growth expected to improve compared to 2024, strengthening over the year as we continue to deliver on our growth plans.
UTOP margin expected to be at or above 16.0%, as we invest for growth; includes negative impact from tariffs currently in place and current foreign exchange rates.
Despite heightened risks from continuing macroeconomic and consumer uncertainties, we remain committed to investing for the medium term.

Follow today's event live
09:00 CEST Investor & analyst call - video webcast
Full details in Events

PDF press releases:

Reports published today:

Contacts:

Media:
Christoph Meier Tel.: +41 21 924 2200
mediarelations@nestle.com

Investors:
David Hancock Tel.: +41 21 924 3509
ir@nestle.com

Operational and strategic review

Growth and investment

In the first half of 2025, organic growth was 2.9%, with 2.8% in Q1 and 3.0% in Q2. Pricing contribution increased to 2.7% in H1, as we took actions to address input cost inflation in coffee and cocoa-related categories. RIG was 0.2%, reflecting lower consumer demand and the short-term impact of consumers and customers adjusting to price increases. Sales declined in Greater China, negatively impacting the Group’s second-quarter OG and RIG by 70 bps and 40 bps, respectively.

We have stepped up our investments in our value proposition: unrivalled product superiority, unbeatable value, unmissable visibility and unforgettable brand communications. For example, we have made a step change in rigor on consumer taste preference testing. Over the last three years, we have tested less than a quarter of top-selling SKUs that account for approximately half of group sales, whereas now we plan to test the remainder of them over the next twelve months and take corrective action if we do not have taste preference. We have also increased marketing investment, with advertising and marketing expenses as a percentage of sales up to 8.6% in H1 2025 compared to 8.1% in H1 2024.

The impact of these efforts can be seen in our progress on both improving our market share trends and in accelerating our category growth. The aggregate growth gap to market for our 18 key underperforming business cells has reduced by a third, with most cells improving their relative performance. These include coffee creamers US, soluble coffee Europe, frozen pizza US, Milo ASEAN and biscuits Brazil.

Where we are investing to accelerate category growth, we are growing four times faster than the Group. This includes platforms, such as ready-to-drink (RTD) coffee and pet therapeutics as well as the rapid roll-out of our six global innovation 'big bets': NAN Sinergity , Nescafé Espresso Concentrate, Maggi air fryer range, chocobakery, Purina ’s gourmet pyramid-shaped cat food, and Nescafé Dolce Gusto Neo . We have completed 65 product-market launches to date – a step change in pace of rollout. In the first half of 2025, the six 'big bets' already achieved combined sales of over CHF 200 million, making good progress towards our ambition to reach at least CHF 100 million in annual sales in each big bet over the next three years.

Efficiency and productivity

Our Fuel for Growth program targets savings of CHF 0.7 billion in 2025, scaling to CHF 2.5 billion by the end of 2027. In H1, over CHF 150 million of savings were recognized in the P&L, and a further CHF 350 million savings have already been secured for H2, putting us well on track to achieve our 2025 target. Examples of savings achieved so far include AI-powered procurement and supplier management, spend consolidation and aggregation, and e-sourcing expansion and automation. These Fuel for Growth savings will come in addition to over CHF 1 billion per annum of ongoing efficiencies from existing initiatives.

Expected phasing of Fuel for Growth cost savings program:

In CHF billion	Achieved H1-2025	Expected 2025	Expected 2026	Expected 2027
2025 non-recurring savings	0.1	0.3
2025 recurring savings	0.05	0.4	0.4	0.4
2026 recurring savings			1.0	1.0
2027 recurring savings				0.9
Total in-period savings	0.15	0.7	1.4	2.3
Run-rate savings at end of 2027				2.5

Strengthening foundations

In Greater China, we are taking material steps to strengthen performance, including changes in leadership. In recent years, we have grown the business by expanding distribution. This model has become challenged by a weaker consumer and the deflationary environment. To deliver sustainable growth, we are now focusing on driving consumer demand by strengthening our value proposition. It will take up to a year to return to sustainable growth.

In Vitamins, Minerals and Supplements (VMS), we have launched a strategic review of our underperforming mainstream and value brands, including Nature’s Bounty , Osteo Bi-Flex , Puritan’s Pride , and US private label, which may result in the divestment of these brands. Our VMS business will focus on global premium brands, such as Garden of Life , Solgar and Pure Encapsulations where our capabilities in science, innovation and brand-building give us a distinct competitive edge.

We are simplifying our organization and digitally transforming our end-to-end processes, leveraging Nestlé’s scale, single ERP core and enterprise data foundations. This will allow us to run the business with greater agility and precision, with connected data and technology to support decision-making, execution and efficiency. Our current areas of focus are consumer engagement, commercial investment decision-making and returns, procurement analytics and connected operations.

Financial review

Sales

Total reported sales decreased by 1.8% to CHF 44.2 billion. This includes a negative impact of 4.7% from foreign exchange, given the significant strengthening of the Swiss franc during the period. Organic growth was 2.9%. Pricing contribution was 2.7%, as we took action to address input cost inflation in coffee and cocoa-related categories. RIG was 0.2%, reflecting soft consumer demand and the short-term impact of consumers and customers adjusting to price increases.

By category, confectionery and coffee were the largest organic growth contributors, driven by pricing of 10.6% and 6.0%, respectively. Our focus in these two categories is on smart pricing action to fully address input cost increases where possible, while maintaining medium-term consumer penetration. In coffee, elasticity effects have been limited, and RIG was slightly positive and remained stable across the two quarters. Short-term elasticities in confectionery have been more pronounced than in coffee, which is consistent with historical trends. Outside confectionery and coffee, organic growth was more modest, led by PetCare and water, while growth in food was negative in the context of a category decline.

By geography, organic growth in developed markets was 1.8%, driven by RIG of 1.0% along with pricing of 0.8%. In emerging markets, organic growth was 4.5%, with pricing of 5.6% and RIG of -1.1%.

By channel, organic growth in retail sales was 2.6%. Organic growth of the out-of-home channel was 5.8%. E-commerce sales grew organically by 12.3%, reaching 20.2% of total Group sales.

Gross profit and operating profit

Gross profit was CHF 20.6 billion. The gross profit margin decreased by 60 bps to 46.6%, primarily driven by the impact of higher coffee and cocoa prices on cost of goods sold, which were not fully compensated by price increases.

Distribution expenses as a percentage of sales were 8.3%, slightly down versus the prior year at 8.4%. Marketing and administration expenses as a percentage of sales increased by 50 bps to 20.4%. This was driven by an increase in advertising and marketing expenses as a percentage of sales, up 50 bps to 8.6% as we continue to step up growth investments; administration expenses as a percentage of sales were flat at 11.8%. Research and development costs as a percentage of sales were slightly down versus the prior year at 1.8%.

Underlying trading operating profit was CHF 7.3 billion, a decrease of 7.1%. The underlying trading operating profit margin was 16.5%, a decrease of 90 bps on a reported basis or 80 bps in constant currency.

Restructuring and net other trading items was CHF 0.4 billion in the first half of both this year and the prior year. Trading operating profit decreased by 6.9% to CHF 6.9 billion. The trading operating profit margin was 15.6%, a decrease of 80 bps on a reported basis.

As % of sales	H1-2025	H1-2024	Reported change	Constant currency change
Sales	100.0%	100.0%	-
Cost of goods sold	- 53.4%	- 52.8%	- 60 bps
Gross profit margin	46.6%	47.2%	- 60 bps
Other revenue	0.4%	0.4%	0 bps
Distribution expenses	- 8.3%	- 8.4%	10 bps
Marketing and administration expenses	- 20.4%	- 19.9%	- 50 bps
Research and development costs	- 1.8%	- 1.9%	10 bps
Underlying trading operating profit margin	16.5%	17.4%	- 90 bps	- 80 bps
Other trading income	0.2%	0.1%	10 bps
Other trading expenses	-1.1%	-1.1%	0 bps
Trading operating profit margin	15.6%	16.4%	- 80 bps	- 70 bps
Other operating income	0.4%	0.5%	- 10 bps
Other operating expenses	- 0.6%	- 0.4%	- 20 bps
Operating profit margin	15.4%	16.5%	- 110 bps

Net financial expenses and income tax

Net financial expenses increased to CHF 759 million from CHF 744 million, reflecting a higher level of average net debt. The average cost of net debt was 2.5% compared to 2.6% in the first half of 2024.

The Group reported tax rate was 26.4%, compared to 25.0% in the prior year period. The increase was due to one-off tax charges reported in 2025. The underlying tax rate was 22.0%.

Net profit and earnings per share

Net profit decreased by 10.3% to CHF 5.1 billion. Basic earnings per share decreased by 9.0% to CHF 1.97 driven by lower net profit, which was partially offset by the impact of the share buyback program, which concluded in December 2024.

Cash flow

Cash generated from operations decreased to CHF 6.2 billion from CHF 8.1 billion in the first half of 2024. Free cash flow was CHF 2.3 billion compared to CHF 4.0 billion in the same period last year, with the decrease primarily due to lower EBITDA and a negative contribution from working capital movements, partially offset by lower capex.

Net debt

Net debt was CHF 60.0 billion as at June 30, 2025, compared to CHF 56.0 billion as at December 31, 2024 and CHF 59.5 billion as at June 30, 2024. The increase largely reflected cash outflows for the dividend payment of CHF 7.8 billion partially offset by a benefit from foreign exchange movements.

Acquisition of minority interests and JVs

During the first half of the year, we increased our ownership in two companies as follow-ons from earlier acquisitions. In China, we acquired all the outstanding minority interests of confectionery company Hsu Fu Chi, and in Nestlé Health Science we further increased our majority stake in Orgain, a leader in plant-based nutrition, where we had an option as part of the original acquisition structure. In South Korea we took control of our Purina business from the existing JV structure and integrated it into Nestlé South Korea.

Operating segment review

	Total Group	Zone Americas	Zone AOA	Zone Europe	Nestlé Health Science	Nespresso	Nestlé Waters & Premium Beverages	Other businesses
Sales H1-2025 (CHF m)	44,228	16,954	10,442	8,467	3,225	3,172	1,821	147
Sales H1-2024 (CHF m)	45,045	17,821	10,591	8,342	3,239	3,096	1,810	146
Real internal growth (RIG)	0.2%	- 0.5%	- 0.3%	- 0.2%	3.3%	2.0%	2.3%	0.7%
Pricing	2.7%	2.7%	2.6%	3.7%	0.1%	3.8%	2.4%	2.5%
Organic growth	2.9%	2.1%	2.4%	3.5%	3.4%	5.8%	4.7%	3.2%
Net M&A	0.0%	- 0.1%	- 0.3%	0.2%	- 0.1%	0.4%	0.0%	0.0%
Foreign exchange	- 4.7%	- 6.9%	- 3.6%	- 2.2%	- 3.7%	- 3.7%	- 4.0%	- 2.3%
Reported sales growth	- 1.8%	- 4.9%	- 1.4%	1.5%	- 0.4%	2.4%	0.6%	0.8%
UTOP H1-2025 (CHF m)	7,287	3,429	2,246	1,456	504	695	170	- 8
UTOP H1-2024 (CHF m)	7,841	3,807	2,366	1,569	433	667	168	- 5
UTOP margin H1-2025	16.5%	20.2%	21.5%	17.2%	15.6%	21.9%	9.3%	- 5.5%
UTOP margin H1-2024	17.4%	21.4%	22.3%	18.8%	13.4%	21.5%	9.3%	- 2.9%
UTOP margin YoY	- 90bps	- 120bps	- 80bps	- 160bps	+ 220bps	+ 40bps	flat	- 260bps

Zone Americas

Zone Americas delivered resilient performance despite a challenging macroeconomic environment and fragile consumer confidence. Growth was broad based across all key markets, and performance was strong in the out-of-home and e-commerce channels. In North America, organic growth and RIG were both positive in Q1 and Q2, with improving market share trends in frozen foods and coffee creamers. In Latin America, growth was pricing-led, with double-digit increases in coffee and confectionery partially offset by negative RIG.