REG - Nestle SA - Nestlé Full-year results 2025 and strategic update
19/02/2026 07:00
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RNS Number : 6523T Nestle SA 19 February 2026
Nestlé Press Release
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Vevey/Switzerland, February 19, 2026
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[Ad hoc announcement pursuant to Art. 53 LR]
Full-year results 2025 and strategic update:
Strong momentum, accelerating strategic change
Philipp Navratil, Nestlé CEO commented: "I am encouraged by our performance
during 2025, which reflects the targeted actions we have taken in a difficult
external environment. 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% 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.
We are accelerating our strategy. We are focusing our portfolio on four
businesses, led by our strongest brands, with prioritized resources and a
simplified organization. We are upgrading our marketing and innovation and
increasing investment behind high-potential growth platforms, which now have
an expanded scope and represent 30% of sales. We are stepping up our
efficiencies and strengthening our financial position. This is underpinned by
a performance culture that rewards excellence and results.
While there is more to be done, we are confident that our faster execution of
a more focused strategy will deliver sustained improvement through 2026 and
beyond."
Results performance summary
In millions of CHF, unless stated 2025 2024 Reported change
- Real internal growth (RIG) 0.8% 0.8%
- Pricing 2.8% 1.5%
Organic growth 3.5% 2.2%
Net acquisitions/(disposals) 0.1% -0.3%
Foreign exchange movements -5.7% -3.7%
Reported sales growth -2.0% -1.8%
Sales 89,490 91,354 -2.0%
Underlying trading operating profit 14,389 15,704 -8.4%
Gross profit margin 45.6% 46.7% -110 bps
Underlying trading operating profit margin 16.1% 17.2% -110 bps
Net profit(1) 9,033 10,884 -17.0%
Basic EPS (CHF) 3.51 4.19 -16.3%
Underlying EPS (CHF) 4.42 4.77 -7.3%
Dividend per share (proposed for 2025) 3.10 3.05 1.6%
Free cash flow 9,154 10,666 -14.2%
(1) Profit for the year attributable to shareholders of the parent
Accelerating our growth strategy
· Sharpening the portfolio around four businesses
○ Focus on powerhouse global businesses in Coffee, Petcare and
Nutrition (together 70% of sales) along with leading regional positions in
Food & Snacks.
○ Integrating Nutrition and Nestlé Health Science into a single
business to strengthen our category leadership, and drive synergies and
simplification.
○ Driving focus in Food & Snacks with continued brand
rationalization, including advanced negotiations for the sale of our remaining
ice cream business to Froneri.
· Prioritizing RIG-led growth
○ Expanding the scope of our growth platforms to 30% of sales,
delivering high single-digit growth, supported by CHF 0.6 billion of
additional investment in 2026.
○ Upgrading and connecting consumer insights, innovation and marketing
capabilities.
· Accelerating our business transformation
○ Simplifying organizational structure with enhanced local
accountability.
○ Executing with urgency on cost program, with 20% of targeted CHF 1
billion annual savings in white-collar operational efficiencies already
achieved, ahead of plan.
· Driving free cash flow (FCF) and lowering net debt
○ Further action to reduce working capital and optimize capex building
on H2-25 progress.
○ Regular review of smaller non-core assets to drive focus and unlock
value.
· Building a performance culture
○ Fostering a culture where winning is recognized and rewarded, and
where teams act as business owners, with no complacency about
underperformance.
○ Incentives adjusted to support RIG delivery and reward execution of
strategic priorities.
Financial performance in 2025 1 (#_ftn1)
· Broad-based momentum in organic sales growth (OG)
○ 2025 OG of 3.5%, with real internal growth (RIG) of 0.8% and pricing
of 2.8%.
○ Targeted growth investments helped drive strong RIG acceleration
from 0.2% in H1-25 to 1.4% in H2-25, with improvement across our categories
and Zones.
○ Market share trends improving significantly, with Group volume share
now flat; billionaire brands share growth is turning positive - the best
performance for more than a decade.
○ Good momentum maintained into Q4-25 with OG of 4.0%, RIG of 1.3% and
pricing of 2.8%.
· Delivering on guidance while increasing investment
○ Underlying trading operating profit (UTOP) margin of 16.1%, in line
with guidance.
○ Fuel for Growth cost savings of CHF 1.1 billion, exceeding target
for the year by over CHF 350 million, supporting margin delivery despite
higher-than-expected headwinds.
○ Advertising and marketing expenses reached 8.6% of sales, reflecting
increased investment and improved efficiency.
○ Net profit of CHF 9.0 billion, basic earnings per share of CHF 3.51.
○ Free cash flow of CHF 9.2 billion with strong H2-25 performance; net
debt/Adjusted EBITDA 2.85x; proposed dividend per share increased to CHF 3.10.
1 Related to the infant formula recall, 2025 results include the estimated
impact of sales returns (CHF (75) million in UTOP) and inventory write-offs
(CHF (110) million in other operating expenses). The impact of sales returns
on OG and RIG will be recognized in 2026.
Guidance 2026
· OG expected to be in the range of around 3% up to 4%, with RIG
accelerating versus 2025, driven by our focused growth plans; this includes
the expected impact of sales returns and stock shortages of approximately -20
bps from the infant formula recall; additional impact is uncertain and could
drive OG towards the lower end of the range.
· UTOP margin expected to improve versus 2025, strengthening in the
second half of the year.
· Free cash flow expected to be above CHF 9 billion.
Changes to the Executive Board
With the formation of the newly integrated Nutrition business, the Globally
Managed Business structure of Nestlé Health Science will be removed. Anna
Mohl, CEO of Nestlé Health Science, will step down from the Executive Board
on 28 February 2026 and has chosen to pursue opportunities outside Nestlé.
The Board of Directors warmly thanks Anna Mohl for her leadership and
significant contributions to Nestlé and wishes her every success in
her future endeavors.
Follow today's events live
09:00 CET Analyst & investor call - video webcast
https://edge.media-server.com/mmc/go/Nestle2025FullYearResults/
11:00 CET Media Q&A - audio webcast
https://edge.media-server.com/mmc/go/Nestle2025-FullYearResultsMedia/
Full details on our website
https://www.nestle.com/media/mediaeventscalendar/allevents/2025-full-year-results
Press release links
2025 full year press release - French (pdf)
https://www.nestle.com/sites/default/files/2026-02/full-year-results-press-release-2025-fr.pdf
2025 full year press release - German (pdf)
https://www.nestle.com/sites/default/files/2026-02/full-year-results-press-release-2025-de.pdf
Other reports published today
2025 Financial Statements (pdf)
https://www.nestle.com/sites/default/files/2026-02/financial-statements-2025-en.pdf
Annual Review 2025 (pdf)
https://www.nestle.com/sites/default/files/2026-02/annual-review-2025-en.pdf
Corporate Governance Report 2025 (pdf)
https://www.nestle.com/sites/default/files/2026-02/nestle-corporate-governance-compensation-report-2025-en.pdf
Non-Financial Statement 2025 (pdf)
https://www.nestle.com/sites/default/files/2026-02/non-financial-statement-2025.pdf
Creating Shared Value at Nestlé 2025: Our impact (pdf)
https://www.nestle.com/sites/default/files/2026-02/creating-shared-value-nestle-2025.pdf
Other language versions available in Publications
https://www.nestle.com/investors/publications
Contacts
Media
Christoph Meier
Tel.: +41 21 924 2200
mediarelations@nestle.com
Investors
David Hancock
Tel.: +41 21 924 3509
ir@nestle.com
Accelerating our growth strategy
Our actions in 2025 have delivered clear results, with growth and market share
trends strengthening in the second half. Building on this momentum, our
accelerated strategy is centered on five priorities.
1. Winning portfolio
Our portfolio is focused on four businesses: Coffee, Petcare, Nutrition and
Food & Snacks. In the first three, we have market-leading positions in
truly global categories; these are approximately 70% of sales. Food &
Snacks is a more regional business, and we have leading global and local
brands. These are all winning businesses: in terms of growth, returns, market
positions and performance. They are also a winning combination: leveraging
commercial synergies and common capabilities, such as route-to-market scale
and science & technology know-how. Together, this gives us a winning
portfolio.
Our Coffee and Petcare businesses are global powerhouses backed by leading
brands: including Nescafé, Nespresso and Starbucks in Coffee, and Pro Plan,
Purina ONE and Friskies in Petcare. For these two businesses, it is all about
executing on our opportunities. In Nutrition, we are creating a third global
powerhouse by integrating our nutrition and Nestlé Health Science units. This
will drive focus, simplification and synergies that allow us to accelerate
growth. In Food & Snacks, we continue our disciplined portfolio management
through targeted brand rationalization. This includes advanced negotiations to
sell our remaining ice cream businesses to Froneri. For Nestlé Waters &
Premium Beverages, we began the formal engagement process with potential
partners in Q1 2026 and expect the business to be deconsolidated from 2027.
2. RIG-led growth
Our portfolio benefits from advantaged exposures, with sales for our
categories expected to grow at 3-4% over the coming years. To deliver growth
across our portfolio, we are focusing on key trends driving food and
beverages; these include affordability for consumers, winning customer
channels such as e-commerce and discounters, and health-conscious consumption.
Our ambition is to grow faster than our categories, with organic growth of 4%+
over the medium term. We are driving acceleration by investing boldly in high
potential growth platforms, expanding their scope to 30% of Group sales (from
10% last year). Growth platforms should deliver high single-digit organic
growth, driven by targeted investment plans that capitalize on our competitive
strengths in structurally growing areas. Examples include cold coffee, pet
therapeutics & supplements, medical nutrition and KitKat.
Marketing is a critical growth enabler. In recent years, Nestlé lost some of
its marketing muscle. We are changing that with best-in-class brand-building
as a global standard, prioritizing fewer brands, and modernizing our operating
model to improve speed, quality and efficiency. We are also better connecting
consumer insights, innovation and marketing to put the consumer at the center.
Delivering value for the consumer is the ultimate driver of our business.
3. Transformation and efficiency
To support growth and improve efficiency, we are fundamentally changing how
work gets done across Nestlé, simplifying our operating model and clarifying
accountabilities. One example is the simplification of our nine end-to-end
business processes, such as procure-to-pay and hire-to-retire. While
underpinned by consistent IT infrastructure, these processes vary considerably
market to market, both the activities and whether the activities take place in
shared services. This slows us down and limits the value of our data. We have
begun accelerating our use of shared services, allowing us to standardize and
automate. This will deliver a simpler, more agile and more productive
operating model.
In Q4 2025, we announced an acceleration of planned global headcount
reductions to c. 16,000 by the end of 2027. This includes c. 12,000
white-collar professionals, driving an increased target for annual operational
efficiency savings of CHF 1.0 billion by the end of 2027. We are executing
with urgency on this program, with 20% of the targeted savings already
achieved, ahead of plan. In conjunction with our procurement savings program,
we are on track to deliver total Fuel for Growth cost savings of CHF 3.0
billion by the end of 2027.
4. Cash and capital allocation
Cash is a key focus. Performance is improving because we have enhanced
governance and accountability, supported by data. This makes stronger cash
generation a repeatable capability. KPIs now give a detailed view of working
capital impactors, allowing sharper challenge and faster corrective action.
Capex discipline is tightened with rigorous scrutiny of business cases and
investment only where it creates returns. Safety and quality remain
non‑negotiable.
Our capital allocation principles are clear: investment in organic growth,
shareholder returns through dividends, and net debt reduction are the highest
priorities. During 2025, we received an extraordinary distribution from our
Froneri joint venture (JV) and sold our minority stake in Herta, helping to
reduce financial leverage and drive focus. We will continuously review smaller
non-core assets for opportunities to simplify and unlock value.
5. Performance culture
Culture is defined by how the organization collaborates, sets goals, makes
decisions, recognizes impact and develops talent. A strengthened focus on
sustainable performance ensures that we create a culture where winning is
recognized and rewarded, where teams act as accountable business owners, with
no complacency around underperformance.
Greater accountability is enabled by changes in our organizational structure.
The core principle is about empowering markets to own local execution - and
the operating P&L - without ambiguity. Above-market activities are limited
to those benefiting from scale and close global coordination. The integrated
Nutrition business reflects this approach - it will be run locally through the
Zones, with the globally-managed business structure of Nestlé Health Science
being removed.
Delivery of the Group strategic priorities is supported by evolved metrics for
the annual bonus. Organic growth now includes a RIG "gatekeeper", personal
goals are set using common objective KPIs and functional leaders are aligned
behind Group performance. A new performance and development framework from
2026 increases transparency and strengthens assessment.
Guidance 2026
Organic growth for 2026 is expected to be in the range of around 3% up to 4%,
with RIG accelerating versus 2025, driven by our focused growth plans. This
range includes the expected impact of sales returns and stock shortages of
approximately -20 bps from the infant formula recall; additional impact is
uncertain and could drive OG towards the lower end of the range. UTOP margin
is expected to improve versus 2025, strengthening in the second half of the
year. Free cash flow is expected to be above CHF 9 billion.
Financial review 2025
Sales
Total reported sales were CHF 89.5 billion. Organic growth was 3.5%. Pricing
contribution was 2.8%, with targeted increases to address input cost inflation
in coffee and cocoa-related categories. RIG was 0.8% despite price increases
and a challenging macroeconomic environment marked by weakening consumer
sentiment. We continued to invest behind our brands and market share trends
improved. Foreign exchange had a negative impact of 5.7% as the Swiss franc
strengthened significantly during the year.
Targeted growth investments helped drive strong RIG acceleration from 0.2% in
H1-25 to 1.4% in H2-25, with improvement in every category and Zone. During
the year, market share trends also improved significantly. For the Group, the
value gap to the market (i.e. the underperformance of Nestlé sales growth
versus market sales growth) reduced by 60%, and the volume gap is now flat.
Billionaire brands share growth is turning positive, the best performance for
more than a decade.
By category, confectionery and coffee were the largest organic growth
contributors, driven by high single-digit pricing. Our focus in these two
categories was 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 over the
year. In confectionery, short-term elasticities were more pronounced,
consistent with historical trends. Outside coffee and confectionery, organic
growth was positive across most categories, notably with RIG-led growth in
PetCare.
By geography, organic growth in developed markets was 2.3%, balanced between
RIG of 1.1% and pricing of 1.2%. In emerging markets, organic growth was 5.4%,
with pricing of 5.1% and RIG of 0.2%.
By channel, organic growth in retail sales was 3.4% and in out-of-home was
5.4%. E-commerce sales grew organically by 13.5%, reaching 20.5% of total
Group sales.
Gross profit and operating profit
Gross profit was CHF 40.8 billion. The gross profit margin decreased by 110
bps to 45.6%, driven by the impact of higher coffee and cocoa prices on cost
of goods sold, tariffs and foreign exchange effects, which were only partially
compensated by price increases and cost savings.
Distribution expenses as a percentage of sales were 8.2%, slightly down versus
the prior year, driven by the successful implementation of savings
initiatives. Marketing and administration expenses as a percentage of sales
increased by 20 bps to 20.0%. This was driven by an increase in advertising
and marketing expenses as a percentage of sales, up 50 bps to 8.6% as we
stepped up growth investments; administration and other marketing expenses as
a percentage of sales decreased by 30 bps to 11.4%. Research and development
costs as a percentage of sales were flat at 1.8%.
Our Fuel for Growth program targeted savings of CHF 0.7 billion in 2025,
scaling to CHF 3.0 billion by the end of 2027 following the upsized target
announced at 9M-25. In 2025, we delivered savings of CHF 1.1 billion as part
of this program, more than CHF 350 million ahead of plan. In addition, we also
achieved over CHF 1 billion of savings as part of ongoing efficiencies in
2025, not included under Fuel for Growth.
Underlying trading operating profit (UTOP) was CHF 14.4 billion, a decrease of
8.4%. UTOP margin was 16.1%, a decrease of 110 bps on a reported basis or 100
bps in constant currency. The year-on-year decline in UTOP margin was
primarily driven by the impact of input cost inflation on gross profit margin
as well as the increase in advertising and marketing expenses and the impact
of tariffs, partly offset by pricing and cost savings initiatives.
Restructuring and net other trading items was CHF 1.7 billion compared to CHF
1.1 billion in 2024. The increase was mainly driven by impairments, litigation
and the allowance for inventory write-offs due to the infant formula recall.
Trading operating profit was CHF 12.7 billion, down 13.4%. Trading operating
profit margin was 14.2%, a decrease of 180 bps on a reported basis.
As % of sales 2025 2024 Reported change Constant currency change
Sales 100.0% 100.0% -
Cost of goods sold -54.4% -53.3% -110 bps
Gross profit margin 45.6% 46.7% -110 bps
Other revenue 0.5% 0.4% 10 bps
Distribution expenses -8.2% -8.3% 10 bps
Marketing and administration expenses -20.0% -19.8% -20 bps
Research and development costs -1.8% -1.8% 0 bps
Underlying trading operating profit margin 16.1% 17.2% -110 bps -100 bps
Other trading income 0.2% 0.1% 10 bps
Other trading expenses -2.1% -1.3% -80 bps
Trading operating profit margin 14.2% 16.0% -180 bps -170 bps
Other operating income 0.3% 0.5% -20 bps
Other operating expenses -0.8% -0.4% -40 bps
Operating profit margin 13.7% 16.1% -240 bps
Net financial expenses and income tax
Net financial expenses were CHF 1.5 billion in 2025, in line with 2024. The
average cost of net debt was 2.6% in both 2025 and 2024.
The Group reported tax rate was 24.6%, compared to 25.0% in the prior year.
The decrease was due to lower one-off tax charges compared to 2024. The
underlying tax rate was 22.1%, compared to 21.9% in the prior year.
Net profit and earnings per share
Net profit decreased by 17.0% to CHF 9.0 billion. Basic earnings per share
decreased by 16.3% to CHF 3.51, driven by lower net profit.
Underlying net profit was CHF 11.4 billion, a decrease of 8.2%, and a decrease
of 2.7% in constant currency. Underlying earnings per share was CHF 4.42, a
decrease of 7.3%, and a decrease of 1.8% in constant currency.
Cash flow
Cash generated from operations decreased to CHF 16.9 billion from CHF 19.6
billion in 2024. Free cash flow was CHF 9.2 billion, compared to CHF 10.7
billion in the same period last year, with the decrease primarily due to lower
Adjusted EBITDA and a negative contribution from working capital movements,
partially offset by lower capex. This FCF performance reflects strong delivery
in the second half of the year. FCF in H1 was CHF 2.3 billion, negatively
impacted by the effect of input cost inflation on working capital as well as
the effect of actions to mitigate tariff impacts. In H2, we delivered CHF 6.8
billion of FCF, helped by actions to improve working capital efficiency and
strengthen capex discipline.
Dividend
At the Annual General Meeting on April 16, 2026, the Board of Directors will
propose a dividend of CHF 3.10 per share, an increase of 5 centime. Nestlé
has maintained or increased the dividend in Swiss francs over the last 66
years, and we remain committed to our dividend practice.
Net debt
Net debt was CHF 51.4 billion as at December 31, 2025, compared to CHF 60.0
billion as at June 30, 2025 and CHF 56.0 as at December 31, 2024. The decrease
reflected strong free cash flow generation in the second half of the year,
along with a CHF 2.0 billion extraordinary distribution from our Froneri joint
venture, and a benefit from foreign exchange movements.
Return on invested capital
Return on invested capital was 12.7%, compared to 14.1% in 2024. This
reduction reflects lower operating profit and higher impairments, partially
compensated by a lower invested capital base.
Acquisitions and divestures, minority interests and joint ventures
In 2025, 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. During Q4
2025, we disposed of our remaining stake in the Herta JV that was established
in 2019. This was part of our regular review of smaller non-core assets for
opportunities to simplify and unlock value.
Infant formula recall
In January 2026, Nestlé launched a global precautionary recall of batches of
infant formula after detecting the presence of cereulide, caused by an
ingredient sourced from a global industry supplier. Full details of the recall
and timeline are available at www.nestle.com/ask-nestle
(http://www.nestle.com/ask-nestle) .
Nestlé maintains high quality standards and safety protocols, which go well
beyond Good Manufacturing Practices and current regulations, including for
managing cereulide risk in infant formula. The recall removed all batches of
products that could potentially contain a level of cereulide ≥0.2 ng/g in
infant formula powder. This is more stringent than the action limit for
recalls of 0.43 ng/g recently defined by the EU and being implemented across
the bloc.
Nestlé's recall is completed and we are now focused on replenishing stocks.
Production has resumed at all infant formula factories, using alternative
ingredient suppliers and with extensive testing before, during and after
production. Our top priorities are quality, product safety and compliance, and
all our products on the market are safe.
Operating segment review
Total Zone Zone Zone Nestlé Nespresso Nestlé Waters & Premium Beverages Other businesses
Group Americas AOA Europe Health
Science
Sales 2025 (CHF m) 89,490 34,482 20,553 17,581 6,551 6,481 3,548 294
Sales 2024 (CHF m) 91,354 36,135 21,177 17,082 6,739 6,378 3,551 292
Real internal growth (RIG) 0.8% 0.1% 0.8% 0.4% 3.5% 1.6% 2.6% 3.0%
Pricing 2.8% 2.8% 2.5% 3.9% -0.3% 4.4% 2.7% 1.3%
Organic growth 3.5% 2.8% 3.2% 4.3% 3.2% 6.0% 5.3% 4.3%
Net M&A 0.1% -0.1% -0.4% 1.2% -0.4% 0.2% -0.1% 0.0%
Foreign exchange -5.7% -7.3% -5.8% -2.6% -5.6% -4.6% -5.2% -4.3%
Reported sales growth -2.0% -4.6% -3.0% 2.9% -2.8% 1.6% 0.0% 0.0%
UTOP 2025 (CHF m) 14,389 7,118 4,254 2,834 1,056 1,160 322 6
UTOP 2024 (CHF m) 15,704 7,918 4,658 3,063 943 1,278 323 -13
UTOP margin 2025 16.1% 20.6% 20.7% 16.1% 16.1% 17.9% 9.1% 2.2%
UTOP margin 2024 17.2% 21.9% 22.0% 17.9% 14.0% 20.0% 9.1% -4.3%
UTOP margin YoY -110 bps -130 bps -130 bps -180 bps 210 bps -210 bps Flat 650 bps
Zone Americas
2025 highlights: Zone Americas delivered broad-based OG of 2.8% for the full
year, achieving positive RIG despite a challenging macroeconomic environment
and cautious consumer sentiment. In North America, growth was driven by RIG,
and market share trends continued to improve. In Latin America, growth was
driven by pricing in confectionery and coffee as well as continued momentum in
out-of-home.
Q4-25 highlights: In Q4, the Zone delivered solid, balanced growth of 3.7% OG,
2.4% pricing and 1.3% RIG. North America OG was 2.5%, of which RIG was 2.4%.
The sequential improvement in RIG was driven by PetCare, with particular
strength in wet cat, as capacity came online after constraints earlier in the
year, further supported by customer buy-in ahead of a price increase on
1 January. In Latin America, growth continued to be driven by pricing actions
for coffee and confectionery.
Segment performance summary for 2025
· Organic growth was 2.8%, with 0.1% RIG and 2.8% pricing.
· Reported sales were down versus the prior year at CHF 34.5
billion, driven by a negative impact of 7.3% from foreign exchange movements.
· In North America, OG was 1.0%, with 0.8% RIG and 0.2% pricing. In
Latin America, OG was 6.7%, with -1.4% RIG and 8.0% pricing.
· By market, growth was seen across almost all regions, led by
Brazil and the U.S.
· Market share continues to improve, led by gains in North America,
particularly in portioned and soluble coffee, coffee enhancers and frozen
food. In Latin America, we saw market share losses in confectionery, ambient
dairy and soluble coffee.
· UTOP margin decreased by 130 bps to 20.6%, driven by input cost
inflation, increased consumer investment, and currency and tariff headwinds
that more than offset pricing actions and efficiencies.
Key organic sales growth drivers by product category for 2025
· Beverages (including coffee and coffee enhancers) posted high
single-digit growth with strong pricing and positive RIG. Nescafé and coffee
enhancers were key growth contributors.
· Confectionery delivered strong high single-digit growth led by
pricing in Garoto (Brazil) and Tollhouse (U.S.). RIG was negative but improved
in the second half, helped by actions to manage price elasticities in
chocolate and by expansion in chocobakery.
· In Nestlé Professional, growth was mid single-digit, driven by
broad-based contributions across Latin America.
· PetCare growth was solid across the Zone. Growth was led by wet
cat food in the U.S., helped by new capacity in Q4 after supply constraints
impacted most of the year. The wet cat category continued to be positive,
while dog food was softer, impacting mainstream brands and snacks.
· Infant Nutrition sales declined for the period, driven by
on-going challenges with Gerber and supply constraints in Nido in the first
half of the year.
· In frozen food, growth remains negative but trends have improved
further, with market share gains in Stouffer's and DiGiorno.
Zone Asia, Oceania and Africa
2025 highlights: In Zone AOA, 3.2% OG was broad based across markets with the
exception of Greater China. The strongest contribution came from the Central
& West Africa Region, South Asia and the Philippines. In Greater China,
sales declined in a deflationary market as we correct trade inventory and
redefine our operating model. By category, growth in Zone AOA reflected
strengthening performance in coffee and food in the second half of the year,
together with RIG-led growth in confectionery.
Q4-25 highlights: OG was 4.6%, with 2.6% pricing and 2.0% RIG. In Zone AOA
excluding Greater China, OG reached 8.6%, continuing the trend of sequential
improvement seen during the first nine months; Q4 RIG of 5.5% is the strongest
since 2020, even excluding the positive impact of Ramadan timing. In Greater
China, Q4 OG was -7.0%, improving compared to the previous two quarters due to
the lower impact of trade inventory correction.
Segment performance summary for 2025
· Organic growth was 3.2%, with 0.8% RIG and 2.5% pricing.
· Reported sales were down versus the prior year at CHF 20.6
billion, due to the negative impact of 5.8% from foreign exchange movements.
· In Zone AOA excluding Greater China, organic growth was 6.1%,
with 2.3% RIG and 3.8% pricing. In Greater China, organic growth was -6.4%,
with -4.5% RIG and -1.9% pricing.
· Market share gains were achieved in confectionery, cocoa malt
beverages and PetCare, while soluble coffee and ambient culinary showed
ongoing improvement.
· UTOP margin decreased by 130 basis points to 20.7%, mainly
reflecting higher cost of goods sold, driven by commodity inflation in coffee
and cocoa as well as increased investment to strengthen competitiveness in the
trade and in brand building.
Key organic sales growth drivers by product category for 2025
· Coffee posted mid single-digit growth, driven by pricing. The
largest growth contributor was Nescafé soluble, with continued strong
momentum behind cold coffee via Nescafé Espresso Concentrate and
ready-to-drink coffee.
· Confectionery grew at a high single-digit pace, driven by KitKat,
with overall market share gains and positive growth in most markets.
Chocobakery has been launched in several markets and is performing well.
· Culinary delivered mid single-digit growth, fueled by solid sales
momentum and market share gains for Maggi, led by cooking aids and noodles.
· Nestlé Professional achieved mid single-digit growth across
geographies and categories, led by dairy and coffee.
· Infant Nutrition and dairy growth was low single digit, led by
double-digit growth in both Milo and NAN across most geographies, partly
offset by illuma.
· PetCare growth was negative, driven by inventory corrections in
Greater China and category softness in developed markets; other emerging
markets delivered strong double-digit growth, supported by increased strategic
investment.
Zone Europe
2025 highlights: In Zone Europe, OG was 4.3%, with RIG of 0.4%. Growth was
broad based across most categories and markets, driven by coffee and
confectionery, with targeted pricing to address input cost inflation, and by
RIG-led growth in PetCare. Market share trends were positive across most
categories. Overall, the environment remains competitive, with a strong focus
on providing value for consumers, especially among retailers in some markets.
Q4-25 highlights: In Q4, OG was 4.4%, with 4.2% pricing and 0.2% RIG. OG was
driven by coffee and confectionery. In coffee, OG was high single digits,
moderating from Q3-25 against a more difficult comparison base. In
confectionery, OG and RIG continued to strengthen, driven by reduced consumer
elasticity effects. PetCare continued to perform well, with mid to high
single-digit RIG across most major markets, while food remained challenging.
By market, growth was solid across the majority of larger markets, with
continued strengthening of OG and RIG in UK & Ireland and France, and an
improvement in Germany.
Segment performance summary for 2025
· Organic growth was 4.3%, with 0.4% RIG and 3.9% pricing.
· Reported sales were up versus the prior year at CHF 17.6 billion,
including a negative impact of 2.6% from foreign exchange movements.
· Growth was positive across most markets and categories, with the
strongest contributions from Türkiye, Iberia, France and South & Eastern
Europe.
· Market share trends were positive, with gains in PetCare and
improved trends across most other categories.
· UTOP margin decreased by 180 bps to 16.1%, as a result of a lower
gross profit margin, with operational efficiencies being reinvested in growth
through a step-up in advertising and marketing spend.
Key organic sales growth drivers by product category for 2025
· Coffee posted high single-digit growth, led by pricing, with RIG
impacted by consumer elasticity effects. The largest growth contributor was
Nescafé soluble coffee.
· Confectionery posted high single-digit growth, driven by pricing,
with negative RIG reflecting elasticity effects. KitKat and Dessert both
delivered double-digit growth.
· PetCare delivered mid single-digit growth. Growth was RIG-led and
broad based across markets, led by Felix, Pro Plan, Gourmet and Purina ONE.
· Sales in Nestlé Professional grew at a high single-digit rate,
driven by beverage solutions.
· Infant Nutrition recorded positive growth, in line with subdued
category dynamics.
· Food experienced a sales decline due to a challenging customer
and competitive environment in some markets.
Nestlé Health Science
2025 highlights: Nestlé Health Science delivered RIG-led growth for the
year, driven by enhanced execution focus and portfolio optimization. Growth
was broad-based across our three segments with strong performance in Orgain
and Pure Encapsulations.
Q4-25 highlights: In Q4, growth was low single-digit driven by Medical
Nutrition and strong consumption trends in Orgain and Pure Encapsulations.
This was partially offset by softness in Garden of Life and the
discontinuation of some private label Vitamins, Minerals and Supplements
(VMS).
We have concluded the strategic review of our mainstream and value brands in
VMS and are moving ahead with the process to engage with potential buyers for
these parts of the business.
Segment performance summary for 2025
· Organic growth was 3.2%, with 3.5% RIG and -0.3% pricing.
· Reported sales decreased by 2.8% to CHF 6.6 billion, driven by a
negative foreign exchange impact of 5.6%.
· Market share losses showed an improved trend across all regions,
particularly within the VMS and Active Nutrition segments.
· UTOP margin increased by 210 bps to 16.1%, driven by a reduction
in structural costs and improved gross profit margin.
Key organic sales growth drivers by product category for 2025
· By geography, North America grew low single-digit, while Europe
and other regions delivered mid single-digit growth.
· VMS reported positive growth, driven by premium brands Pure
Encapsulations and Solgar. This was partially offset by the discontinuation of
some private label activities and sales declines in some mainstream and value
brands.
· Active Nutrition posted mid single-digit growth, which was driven
by RIG-led momentum from innovation and distributions gains in Orgain and
partially offset by Vital Proteins.
· Medical Nutrition delivered mid single-digit growth across all
segments, with strong contributions from Resource and Compleat.
Nespresso
2025 highlights: Nespresso delivered OG of 6.0%, led by pricing and supported
by positive RIG. North America remained the key growth driver, with
double-digit growth, strong consumer acquisition and continued market share
gains, supported by increased investments. In Western Europe, market
conditions remained challenging.
Q4-25 highlights: In Q4, OG was 4.2%, with -0.6% RIG and 4.8% pricing. Growth
was driven by the U.S., with continued double-digit OG led by RIG, albeit
slowing compared to a very strong Q3. In Europe, the environment remains
competitive, with broadly flat OG reflecting some price elasticity and the
negative effect of some customer order phasing.
Segment performance summary for 2025
· Organic growth was 6.0%, with 1.6% RIG and 4.4% pricing.
· Reported sales were up versus the prior year at CHF 6.5 billion,
despite a negative foreign exchange impact of 4.6%.
· Market share gains in North America continued to build strong
momentum. In Europe, share remained under pressure across key markets due to
competitive intensity.
· UTOP margin declined by 210 bps to 17.9%, reflecting higher cost
of goods sold in H2, driven by inflation in coffee, tariffs as well as a
marked increase in marketing investment to support growth.
Key organic sales growth drivers for 2025
· By geography, North America delivered strong double-digit growth,
led by RIG and fueled by successful brand campaigns, celebrity collaborations
as well as impactful innovations. In Europe growth was positive and led by
pricing.
· By system, growth was driven by Vertuo. Out-of-home grew mid
single-digits, led by strong hotels, restaurants and cafés (horeca) momentum
and increased machine placements.
· Digital transformation remained a key enabler. Deployment of the
Nespresso mobile app contributed to increasing basket value and purchase
frequency, Starbucks direct-to-consumer received strong reception, while
e-retail and marketplaces were key growth drivers of business to consumer
channel.
Nestlé Waters & Premium Beverages
2025 highlights: In Nestlé Waters & Premium Beverages, OG was 5.3%, with
RIG of 2.6% and pricing of 2.7%. Performance was broad based across
geographies, brands and sales channels. Growth was driven by Maison Perrier
and Sanpellegrino as well as out-of-home channels.
Q4-25 highlights: In Q4, OG was 8.3%, with 4.5% RIG and 3.8% pricing. Q4-25
marked the fourth quarter of positive RIG and the strongest quarter of the
year. Performance was broad based, helped by a softer comparison base, with
particular strength in Americas and in premium beverages, led by Maison
Perrier and Sanpellegrino.
We are moving ahead with the partial disposal of the business, and we have
started engaging with potential partners.
Segment performance summary for 2025
· Organic growth was 5.3%, with 2.6% RIG and 2.7% pricing.
· Reported sales was up compared to prior year at CHF 3.5
billion, despite the negative impact from foreign exchange of 5.2%.
· Market share gains continued in S.Pellegrino and Perrier.
· UTOP margin was unchanged compared to prior year at 9.1%, as
increased investment behind premium beverages brands was offset by operational
cost savings.
Key organic sales growth drivers for 2025
· By geography, Americas posted high single-digit growth, AOA and
Europe delivered mid single-digit growth.
· Premium beverages continued to outperform with strong
double-digit growth, driven by the international expansion of Maison Perrier,
which is now present in 80 markets, and the rollout of Sanpellegrino
innovations in CIAO! and Zero ranges.
· Within waters, we saw solid growth from our international premium
brands including Maison Perrier, S.Pellegrino and Acqua Panna, partly offset
by a weaker performance from Perrier reflecting continued supply constraints.
Category performance
Total Powdered Water Milk products & Ice cream Nutrition Prepared dishes & cooking aids Confec-tionery PetCare
Group & Liquid Beverages & Health Science
Sales 2025 (CHF m) 89,490 25,144 3,128 9,698 14,304 10,114 8,696 18,406
Sales 2024 (CHF m) 91,354 24,598 3,180 10,397 15,137 10,711 8,449 18,882
Real internal growth (RIG) 0.8% 0.7% 1.0% 0.8% 0.1% -0.2% -0.7% 2.6%
Pricing 2.8% 6.6% 2.9% 0.5% 0.5% -0.1% 8.8% -0.4%
Organic growth 3.5% 7.3% 3.9% 1.3% 0.6% -0.4% 8.2% 2.2%
UTOP 2025 (CHF m) 14,389 4,324 288 2,229 2,825 1,977 1,107 4,000
UTOP 2024 (CHF m) 15,704 4,920 279 2,442 3,006 2,137 1,299 4,087
UTOP Margin 2025 16.1% 17.2% 9.2% 23.0% 19.7% 19.5% 12.7% 21.7%
UTOP Margin 2024 17.2% 20.0% 8.8% 23.5% 19.9% 19.9% 15.4% 21.6%
Powdered and Liquid Beverages was the largest category growth contributor,
with 7.3% organic growth, led by pricing, as we took actions to address input
cost inflation in coffee. Nescafé and Nespresso were the leading contributors
of growth. RIG remained positive, with only limited elasticity observed
following the price increases.
Confectionery organic growth of 8.2% was driven by pricing and led by KitKat.
Negative RIG reflects short-term volume softness resulting from price-driven
elasticity.
PetCare delivered 2.2% organic growth, helped by improved performance in the
fourth quarter of the year. Growth was led by wet and dry cat, partly offset
by weakness in dry dog. Market share grew globally, driven by Europe.
Milk products and Ice cream posted 1.3% organic growth, led by solid
performance from dairy culinary brands, Nestlé and La Lechera.
Water delivered organic growth of 3.9%, led by good performance from Maison
Perrier and S.Pellegrino.
Nutrition and Health Science recorded organic growth of 0.6%, driven by strong
performance from NAN and Orgain, partially offset by weakness in Gerber and
illuma.
Prepared dishes and cooking aids reported slightly negative organic growth of
-0.4%, driven by category weakness in U.S. Frozen Foods and partly offset by
growth in Maggi.
Annex
Fourth-quarter performance
Total Zone Zone Zone Nestlé Nespresso Nestlé Waters Other businesses
Group Americas AOA Europe Health & Premium Beverages
Science
Sales Q4-2025 (CHF m) 23,621 9,188 5,290 4,796 1,702 1,775 795 75
Sales Q4-2024 (CHF m) 24,206 9,568 5,536 4,626 1,824 1,792 786 74
Real internal growth (RIG) 1.3% 1.3% 2.0% 0.2% 1.9% -0.6% 4.5% 5.4%
Pricing 2.8% 2.4% 2.6% 4.2% -0.4% 4.8% 3.8% 0.4%
Organic growth 4.0% 3.7% 4.6% 4.4% 1.5% 4.2% 8.3% 5.8%
Total Powdered Water Milk products & Ice cream Nutrition Prepared dishes & cooking aids Confec-tionery PetCare
Group & Liquid Beverages & Health Science
Sales Q4-2025 (CHF m) 23,621 6,701 697 2,523 3,586 2,669 2,622 4,823
Sales Q4-2024 (CHF m) 24,206 6,646 706 2,749 3,824 2,885 2,529 4,867
Real internal growth (RIG) 1.3% -0.6% 2.1% 0.7% -0.1% 0.9% 1.4% 5.4%
Pricing 2.8% 7.4% 3.9% -0.9% 0.8% -1.2% 7.0% -0.1%
Organic growth 4.0% 6.8% 6.0% -0.1% 0.7% -0.3% 8.4% 5.3%
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