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 profit1 | 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 20251
- 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%.
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.
- 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.
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 endeavours.
Press release links