Nestle Announce 9 Month Sales for 2025

Nine-month sales 2025: Positive trends; focus on driving growth

Philipp Navratil, Nestlé CEO commented: “Driving RIG-led growth is our number one priority. We have been stepping up investment to achieve this, and the results are starting to come through. Now we must do more and move faster to accelerate our growth momentum.

As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritizing the opportunities and businesses with the highest potential returns. We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation. We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded.

The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency. Along with other measures, we are working to substantially reduce our costs, and today we are increasing our savings target to CHF 3.0 billion by the end of 2027.

The actions we are taking will secure Nestlé’s future as a leader in our industry. Collectively, they will enable us to improve our overall performance and deliver shareholder value.“

Sales performance summary

	Total Group	Zone Americas	Zone AOA	Zone Europe	Nestlé Health Science	Nespresso	Nestlé Waters & Premium Beverages	Other businesses
Sales 9M-2025 (CHF m)	65 869	25 294	15 263	12 785	4 849	4 706	2 753	219
Sales 9M-2024 (CHF m)	67 148	26 567	15 641	12 456	4 915	4 586	2 765	218
Real internal growth	0.6%	-0.4%	0.3%	0.5%	4.1%	2.4%	2.0%	2.2%
Pricing	2.8%	2.9%	2.4%	3.7%	-0.3%	4.3%	2.4%	1.6%
Organic Growth	3.3%	2.5%	2.7%	4.3%	3.8%	6.7%	4.4%	3.8%
Net M&A	0.1%	-0.1%	-0.4%	0.9%	-0.3%	0.3%	-0.0%	-0.0%
Foreign Exchange	-5.4%	-7.2%	-4.8%	-2.5%	-4.8%	-4.3%	-4.8%	-3.4%
Reported sales growth	-1.9%	-4.8%	-2.5%	2.6%	-1.4%	2.6%	-0.4%	0.4%

Financial and operational highlights

• Broad-based topline improvement
  • 9M organic sales growth (OG) of 3.3%, with 0.6% real internal growth (RIG) and 2.8% pricing.
  • OG strengthened sequentially during the period across all Zones and major global businesses, led by improved RIG across all major categories.
  • Q3 OG of 4.3%; RIG recovered strongly to 1.5%, driven by our growth investments and actions to manage price elasticity, helped by an easier comparison base.
  • Q3 OG of 4.3%; RIG recovered strongly to 1.5%, driven by our growth investments and actions to manage price elasticity, helped by an easier comparison base.

• Growth investments delivering results
  • In 9M-25, OG increased to 3.3% from 2.0% in 9M-24. The vast majority of this 130 bps acceleration was driven by areas where we are focusing growth investments and execution improvement:
    • 60 bps from our priority growth opportunities (which accounted for 10% of total sales), where OG accelerated to 14% from 7%;
    • 40 bps from the 18 key underperforming business cells, where OG improved to flat from -2.5%.

Strategic priorities for the coming months

• Rigorously prioritizing growth opportunities
  • Clear focus on allocating capital in a rational, data-based, and unbiased way, supporting the strongest opportunities with increased investment at scale.
  • Increased ambition on innovation, building on the momentum of the six global ‘big bets’ and broadening our approach, including a step change in consumer insights and marketing capabilities.

• Accelerating our Fuel for Growth cost savings program
  • Increased focus on operational efficiency, including leveraging shared services and automating our processes, to drive positive business transformation.
  • Planned global headcount reduction of c. 16,000 over next two years, subject to consultation where applicable:
    • Includes c. 12,000 white-collar professionals across functions and geographies, driving annual savings of CHF 1.0 billion by end of 2027 (doubled versus original plan of CHF 0.5 billion); related one-off restructuring costs expected at two times annual savings;
    • Further c. 4,000 headcount reduction as part of ongoing productivity initiatives in manufacturing and supply chain.
  • Total Fuel for Growth cost savings target increased to CHF 3.0 billion (up from CHF 2.5 billion previously) by the end of 2027.

• Focused on driving cash generation, committed to sustainable shareholder returns
  • Clear plan to deliver free cash flow above CHF 8 billion in 2025, recovering in 2026 onwards with FCF growth in CHF that is consistently higher than dividend growth.
  • Committed to our long-standing dividend practice.

2025 guidance

• Organic sales growth is expected to improve compared to 2024. Sequentially, momentum remains positive, although the comparison base will be tougher in Q4.

• UTOP margin is expected to be at or above 16.0%, as we invest for growth; this includes increased negative impact from tariffs currently in place and current foreign exchange rates.

• Despite ongoing risks from macroeconomic and consumer uncertainties, we remain committed to investing for the medium term.