Nestlé reported its financial results for the first half of 2025, highlighting moderate sales growth and significant improvement in profitability driven by price adjustments, productivity programs, and portfolio management.

Key financial highlights

  • Total reported sales stood at CHF 46.3 billion, a 5.3% decline from CHF 48.9 billion in H1 2024.

  • Organic growth came in at 2.2%, down from 8.7% in the same period last year.

    • Pricing contributed 3.3%

    • Real internal growth (RIG) was -1.1%, indicating lower volumes.

  • Operating profit rose by 9.4% to CHF 8.4 billion, up from CHF 7.7 billion in H1 2024.

  • Operating margin increased by 240 basis points to 18.1%, up from 15.7%.

  • Underlying trading operating profit improved by 70 basis points to 17.5% of sales.

  • Net profit surged 19.4% to CHF 6.5 billion, with earnings per share (EPS) up 22.0% to CHF 2.54.

Regional performance

  • North America: Organic growth of 2.3%, supported by price increases; volume was flat. Growth driven by pet care (Purina), coffee, and creamers.

  • Europe: Weak performance with -1.2% organic growth, driven by lower volumes; pricing remained positive.

  • Asia, Oceania, and sub-Saharan Africa (AOA): Delivered 5.0% organic growth, with strong momentum in India and Southeast Asia.

  • Latin America: Achieved 6.7% organic growth, supported by strong demand in Mexico and Brazil.

  • Greater China: Registered 4.3% organic growth, with strong performance in culinary and coffee segments.

Business segment performance

  • Powdered and liquid beverages: Organic growth of 3.2%, led by Nescafé and Starbucks products.

  • Nutrition and health science: Declined by 0.5%, impacted by softness in consumer care and vitamins.

  • Pet care: Delivered strong organic growth of 7.0%, with robust demand across all geographies.

  • Prepared dishes and cooking aids: Grew by 3.5%, driven by convenience products and food service.

Strategic updates

  • Portfolio Management: Nestlé completed the sale of Palforzia (peanut allergy treatment) and announced the disposal of certain underperforming assets.

  • Innovation Focus: Continued investment in premiumization, sustainability, and digital transformation.

  • Outlook 2025: The company reaffirmed its guidance:

    • Organic sales growth between 4% to 6%

    • Underlying trading operating profit margin between 17.5% to 18.5%

    • Improvement in underlying EPS in constant currency.

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