Half-year results 2025: Consistent execution, improving growth foundations
Laurent Freixe, Nestlé CEO commented: “We are executing our strategy to accelerate performance and transform for the future. We are accelerating our category growth and improving our market share, through better execution and increased investment, funded through a relentless pursuit of efficiency.
These actions are already delivering results, with broad-based growth and a robust profit performance in the first half. Where we are investing to accelerate category growth, we are growing four times faster than the Group, and our six innovation ‘big bets’ achieved sales of over CHF 200 million in the first half. At the same time, we are addressing our 18 key underperforming business cells, and the aggregate growth gap to market has improved by a third. We are also taking decisive measures to strengthen our business in Greater China and focus our Vitamins, Minerals and Supplements business on winning premium brands.
We have maintained our guidance for 2025, while recognizing increased macroeconomic risks and uncertainties. We remain confident that our actions to drive performance and transformation will deliver our medium-term growth and profit ambitions.”
Results performance summary
| In millions of CHF, unless stated | H1–2025 | H1-2024 | Reported change |
| – Real internal growth (RIG) | 0.2% | 0.1% | 10 bps |
| – Pricing | 2.7% | 2.0% | 70 bps |
| Organic growth | 2.9% | 2.1% | 80 bps |
| Net acquisitions/(disposals) | 0.0% | -0.4% | 40 bps |
| Foreign exchange movements | -4.7% | -4.4% | -30 bps |
| Reported sales growth | -1.8% | -2.7% | 90 bps |
| Sales | 44,228 | 45,045 | -1.8% |
| Underlying trading operating profit | 7,287 | 7,841 | -7.1% |
| Gross profit margin | 46.6% | 47.2% | -60 bps |
| Underlying trading operating profit margin | 16.5% | 17.4% | -90 bps |
| Net profit1 | 5,065 | 5,644 | -10.3% |
| Basic EPS (CHF) | 1.97 | 2.16 | -9.0% |
| Underlying EPS (CHF) | 2.27 | 2.40 | -5.4% |
| Free cash flow | 2,307 | 3,978 | -42.0% |
1 Profit for the year attributable to shareholders of the parent
Financial highlights
· Broad-based sales growth
○ H1 organic sales growth (OG) of 2.9%, with real internal growth (RIG) of 0.2% and pricing of 2.7%.
○ Q2 OG of 3.0%, with RIG of -0.4% and pricing of 3.3%. OG improved compared to Q1 across most businesses.
○ Pricing actions taken through H1, with low elasticity in coffee and higher short-term impact in confectionery.
○ Decline in Greater China impacting Group Q2 OG by 70 bps and RIG by 40 bps.
· Solid profit performance while stepping up investment
○ Underlying trading operating profit (UTOP) margin of 16.5%, impacted by inflation in costs of goods sold, step-up in growth investments and currency headwinds.
○ Net profit of CHF 5.1 billion, basic earnings per share (EPS) down 9.0% to CHF 1.97, free cash flow of CHF 2.3 billion.
Operational and strategic progress
· Investing in growth, with focused and consistent execution delivering results
○ Marketing investment increased, with advertising and marketing expenses reaching 8.6% of sales in the first half of 2025.
○ Where we are investing to accelerate category growth, we are growing at four times the rate of overall group OG.
○ Rapid roll-out of six global innovation ‘big bets’ reaching combined sales of over CHF 200 million in H1 2025.
○ In 18 key underperforming business cells, aggregate growth gap to market improved by a third.
· Good progress with CHF 2.5 billion Fuel for Growth cost savings program
○ On track to achieve target of CHF 0.7 billion savings in 2025, with over CHF 150 million recognized in the P&L in H1 and an additional CHF 350 million already secured for H2.
· Taking steps to strengthen growth profile in Greater China and Nestlé Health Science
○ Taking action in Greater China to improve performance; measures will be a growth headwind for up to a year.
○ Focusing the Vitamins, Minerals and Supplements (VMS) business on premium brands, launching strategic review of our mainstream and value brands.
· Simplifying our organization and digitally transforming our end-to-end processes
○ Leveraging Nestlé’s scale, single enterprise resource planning (ERP) core and data foundations, and expanding our AI platforms to support decision-making, execution and efficiency.
2025 guidance
· 2025 guidance maintained, despite factoring in increased headwinds.
· Organic sales growth expected to improve compared to 2024, strengthening over the year as we continue to deliver on our growth plans.
· UTOP margin expected to be at or above 16.0%, as we invest for growth; includes negative impact from tariffs currently in place and current foreign exchange rates.
· Despite heightened risks from continuing macroeconomic and consumer uncertainties, we remain committed to investing for the medium term.