Half-year results 2026: execution driving RIG
Philipp Navratil, Nestlé CEO, commented: “Our RIG-led growth strategy is delivering, with organic growth of 3.7% and RIG of 1.8% in Q2, making steady progress towards our medium-term guidance. Emerging markets growth accelerated, and we delivered solid performance in developed markets. We are increasing and prioritizing our investment behind our leading brands and growth platforms, sharpening our portfolio focus and driving further efficiencies to reinvest. While the external environment remains uncertain, we are taking actions to accelerate consistent growth.”
Results performance summary
| In millions of CHF, unless stated | H1–2026 | H1-2025 | Reported change |
| – Real internal growth (RIG) | 1.5% | 0.2% | |
| – Pricing | 2.1% | 2.7% | |
| Organic growth | 3.6% | 2.9% | |
| Net acquisitions/(disposals) | 0.1% | 0.0% | |
| Foreign exchange movements | -6.2% | -4.7% | |
| Reported sales growth | -2.5% | -1.8% | |
| Sales | 43 109 | 44 228 | -2.5% |
| Underlying trading operating profit | 7 081 | 7 287 | -2.8% |
| Gross profit margin | 46.4% | 46.6% | -20 bps |
| Underlying trading operating profit margin | 16.4% | 16.5% | -10 bps |
| Net profit1 | 3 472 | 5 065 | -31.4% |
| Basic EPS (CHF) | 1.35 | 1.97 | -31.4% |
| Underlying EPS (CHF) | 2.22 | 2.27 | -2.4% |
| Free cash flow | 3 375 | 2 307 | 46.3% |
1 Profit for the period attributable to shareholders of the parent
Financial highlights
- Broad-based organic growth (OG) with improving RIG
- H1-26 OG of 3.6%, with real internal growth (RIG) of 1.5% and pricing of 2.1%.
- Q2-26 OG of 3.7%, with RIG improving to 1.8% and pricing of 1.9%.
- OG positive in all zones, globally managed businesses and product categories in Q2.
- Emerging markets (EM) performance strengthened in H1; OG of 7.1% and RIG of 3.9% in EM excluding China. China now stable, planned trade inventory reduction completed.
- Solid growth in developed markets with OG of 2.3% and RIG of 0.6% in H1. Sell-out is robust in the US and consumer demand is holding up in Europe.
- Sequential profit progression while increasing investment
- H1-26 underlying trading operating profit (UTOP) margin of 16.4%, down 10 basis points (bps) year-on-year; good sequential improvement (vs 15.7% in H2-25).
- Net profit of CHF 3.5 billion, basic earnings per share (EPS) of CHF 1.35.
- Free cash flow of CHF 3.4 billion, reflecting actions to strengthen cash generation.
Operational and strategic updates
- Continued acceleration of RIG towards 2%+ medium-term target
- Growth platforms delivering 7% OG with mid single-digit RIG, supported by increased investment.
- Advertising and marketing expenses up to 8.9% of sales – investing more and better. ‘KitKat heist’ campaign won 9 Cannes Lions awards.
- Portfolio actions sharpening our focus on four core businesses
- Partnership announced to form 50:50 JV for waters and premium beverages; net cash proceeds of approximately CHF 2.8 billion expected in H1 2027.
- Mainstream vitamins, minerals & supplements (VMS) and ice cream businesses also now
classified as ‘assets held for sale’ as sale processes progress.
- Acquired remaining stake in leading smart food brand yfood and divested Blue Bottle Coffee.
- Transformation and cost savings programs on track
- Cumulative Fuel for Growth cost savings now up to CHF 1.7 billion; on track for target of CHF 2.0 billion for 2026.
2026 guidance
- OG expected to be in the range of 3% to 4%, with RIG accelerating versus 2025, driven by our focused growth plans.
- UTOP margin expected to improve versus 2025; second half margin now expected to be broadly similar to the first half.
- Free cash flow expected to be above CHF 9 billion.
Note: 2025 figures were restated as of January 1, 2026, following the integration of the Nestlé Health Science Globally Managed Business into the Nutrition business of the three Zones and the decision to focus Nestlé’s portfolio on four categories.