During the first nine months of 2025, Nestlé reported organic sales growth (OG) of 3.3 per cent, with 0.6 per cent RIG and 2.8 per cent pricing contribution Nestlé CEO…

During the first nine months of 2025, Nestlé reported organic sales growth (OG) of 3.3 per cent, with 0.6 per cent RIG and 2.8 per cent pricing contribution

Nestlé CEO Philipp Navratil has outlined a bold strategic agenda to accelerate growth, enhance operational efficiency, and drive shareholder value. Emphasising the company’s focus on Real Internal Growth (RIG), Navratil noted that Nestlé is stepping up investments in high-potential areas while making tough but necessary decisions to strengthen its long-term competitiveness.

During the first nine months of 2025, Nestlé reported organic sales growth (OG) of 3.3 per cent, with 0.6 per cent RIG and 2.8 per cent pricing contribution. Sequential improvement was observed across all regions and major categories, led by growth investments and effective pricing strategies. In Q3, OG reached 4.3 per cent, with RIG recovering to 1.5 per cent, driven by the company’s focused growth initiatives. However, the Greater China market remained a drag, impacting Q3 OG by 80 bps and RIG by 40 bps, with new management now executing a transformation plan for the region.

Nestlé highlighted that growth investments are delivering tangible results. Priority growth opportunities, representing 10 per cent of total sales, accelerated OG to 14 per cent from 7 per cent, while underperforming business cells improved to flat from -2.5 per cent.

On the cost-efficiency front, Nestlé is increasing its Fuel for Growth savings target to CHF 3 billion by 2027. The company plans a global headcount reduction of around 16,000, primarily among white-collar functions, aiming for annual savings of CHF 1 billion by the end of 2027. Additional productivity improvements in manufacturing and the supply chain will account for further savings.

Strategically, Nestlé is prioritising high-return investments, scaling innovation, and enhancing marketing and consumer insight capabilities. The company also targets free cash flow above CHF 8 billion in 2025, supporting sustainable dividends and long-term shareholder returns.

Navratil concluded, “The world is changing, and Nestlé needs to change faster. Our rigorous approach to growth, operational efficiency, and disciplined investment will secure Nestlé’s future as an industry leader while delivering value to shareholders.”