Nestlé reported improved momentum in 2025, delivering broad-based organic growth and strengthening its strategic focus despite a challenging external environment Nestlé delivered improved momentum in 2025, posting broad-based organic growth…

Nestlé reported improved momentum in 2025, delivering broad-based organic growth and strengthening its strategic focus despite a challenging external environment

Nestlé delivered improved momentum in 2025, posting broad-based organic growth and strengthening its strategic execution despite a challenging macroeconomic environment.

“I am encouraged by our performance during 2025, which reflects the targeted actions we have taken in a difficult external environment,” said Philipp Navratil, CEO of Nestlé. “Real internal growth (RIG) was positive across all Zones and global businesses. We increased our investment in marketing, delivered a UTOP margin of 16.1 per cent and generated CHF 9.2 billion in free cash flow. Improving organic growth, RIG and market share trends in the second half show that our actions are working.”

Nestlé reported improved momentum in 2025, delivering broad-based organic growth and strengthening its strategic focus despite a challenging external environment.

The company posted organic sales growth (OG) of 3.5 per cent for the full year, supported by real internal growth (RIG) of 0.8 per cent and pricing of 2.8 per cent. Growth accelerated in the second half of the year, with RIG improving from 0.2 per cent in H1-25 to 1.4 per cent in H2-25, reflecting the impact of targeted investments in marketing and innovation. Fourth-quarter performance remained strong, with OG of 4.0 per cent, RIG of 1.3 per cent and pricing of 2.8 per cent.

Nestlé delivered an underlying trading operating profit (UTOP) margin of 16.1 per cent and generated CHF 9.2 billion in free cash flow, while market share trends showed significant improvement. Group volume share returned to flat, and billionaire brands resumed positive share growth, marking the strongest performance in over a decade.

Nestlé is concentrating on four core businesses, prioritising its powerhouse global categories Coffee, Petcare and Nutrition, which together account for 70 per cent of sales alongside leading regional positions in Food & Snacks. The company is integrating Nutrition and Nestlé Health Science into a single business to strengthen category leadership and unlock synergies.

In Food & Snacks, brand rationalisation continues, with advanced negotiations underway for the sale of its remaining ice cream business to Froneri.

The company is prioritising volume-driven growth, expanding its high-potential growth platforms to represent 30 per cent of sales. These platforms are delivering high single-digit growth and will be supported by an additional CHF 0.6 billion investment in 2026.

Nestlé is also accelerating its transformation programme, simplifying its organisational structure and strengthening local accountability. It has already achieved 20 per cent of its targeted CHF 1 billion annual savings in white-collar operational efficiencies, ahead of schedule.

Further initiatives are underway to enhance free cash flow and reduce net debt, including tighter working capital management and regular reviews of smaller non-core assets.

The company is reinforcing a performance-driven culture, adjusting incentives to reward RIG delivery and strategic execution. Leadership emphasised urgency, accountability and a focus on results to drive sustained improvement.

Looking ahead, Nestlé expressed confidence that faster execution of a more focused strategy will deliver continued growth and profitability improvements through 2026 and beyond.