Press Release: Nestle: Half-year results 2025: -4-

Segment performance summary

-- Organic growth was 3.4%, with 3.3% RIG and 0.1% pricing.

-- Reported sales decreased by 0.4% to CHF 3.2 billion, including a negative

foreign exchange impact of 3.7%.

-- Market share was stable in both VMS and Medical Nutrition, with losses in

Active Nutrition.

-- UTOP margin increased by 220 bps to 15.6%, driven by positive mix

effects.

Key organic sales growth drivers

-- By geography, North America posted low single-digit growth, whilst Europe

and other regions delivered mid single-digit growth.

-- VMS reported low single-digit growth, as sales momentum in premium brands,

particularly Pure Encapsulations and Solgar, was partially offset by

declines in mainstream and value brands and the discontinuation of some

private label activities.

-- Active Nutrition posted low single-digit growth. Strong momentum for

Orgain was partially offset by a weaker performance from Vital Proteins.

-- Medical Nutrition delivered high single-digit growth, led by improved

sales momentum for pediatric care products, including strong double-digit

growth in the allergy range as well as Compleat.

Nespresso

Nespresso delivered solid growth, led by accelerating pricing across products, channels and geographies, along with positive RIG. Successful brand campaigns, innovation and strong performance from limited edition launches supported growth. Vertuo again delivered strong performance, particularly in North America, while the environment in Western Europe remains competitive.

Segment performance summary

-- Organic growth was 5.8%, with 2.0% RIG and 3.8% pricing.

-- Reported sales increased by 2.4% to CHF 3.2 billion, including a negative

impact of 3.7% from foreign exchange movements.

-- Market share continued to grow with momentum in North America and Asia,

with strong RIG-led growth supported by innovation. Western Europe

remains soft, with positive growth across many markets but continued

strong competitive pressure.

-- UTOP margin was up 40 bps to 21.9%, driven by the timing benefit of

pricing versus input cost increases, as higher coffee prices flow through

with some time lag given the length of the supply chain.

Key organic sales growth drivers

-- By geography, sales in North America posted a strong double-digit rate.

In Europe, growth was close to flat.

-- By system, growth was driven by Vertuo, with strong sales growth and

positive momentum across almost all geographies. Sales for out-of-home

channels grew at a mid single-digit rate, led by the hotels, restaurants

and catering (horeca) sector and positive machine placements.

Nestlé Waters & Premium Beverages

Growth was broad based across markets and strengthened in the second quarter. This was primarily driven by key growth platforms Maison Perrier and Sanpellegrino and robust sales in out-of-home channels. We are progressing with the strategic evaluation of the business.

Segment performance summary

-- Organic growth was 4.7%, with 2.3% RIG and 2.4% pricing.

-- Reported sales increased by 0.6% to CHF 1.8 billion, including a negative

impact from foreign exchange of 4.0%.

-- Market share moved into positive territory, led by strong gains for

S.Pellegrino.

-- UTOP margin was flat at 9.3%, as operational cost savings were offset by

increased investment in our premium beverages growth platform.

Key organic sales growth drivers

-- By geography, Southern Europe and AOA posted high single-digit growth,

the Americas delivered mid single-digit growth and Northern Europe

recorded low single-digit growth.

-- Growth was strong in premium beverages, supported by the geographic

expansion of Maison Perrier and the roll-out of new innovations under the

Sanpellegrino Ciao and Zero ranges.

-- Within waters, we saw solid growth from S.Pellegrino and Acqua Panna,

with a weaker performance from Perrier due to the continued impact of

supply constraints.

Category performance

Milk Prepared

Powdered products Nutrition dishes &

Total & liquid & ice & Health cooking

Group beverages Water cream Science aids Confec-tionery PetCare

Sales

H1-2025

(CHF m) 44,228 12,308 1,611 4,830 7,237 5,051 3,962 9,229

Sales

H1-2024

(CHF m) 45,045 12,041 1,621 5,189 7,637 5,260 3,845 9,452

Real

internal

growth

(RIG) 0.2% 0.6% 0.9% 0.2% - 0.8% - 1.1% - 2.1% 1.8%

Pricing 2.7% 5.8% 2.8% 0.9% 0.8% 0.2% 10.6% - 0.5%

Organic

growth 2.9% 6.4% 3.7% 1.1% 0.0% - 0.9% 8.5% 1.3%

UTOP

H1-2025

(CHF m) 7,287 2,350 156 1,078 1,500 935 436 2,037

UTOP

H1-2024

(CHF m) 7,841 2,529 145 1,202 1,492 1,003 548 2,086

UTOP

Margin

H1-2025 16.5% 19.1% 9.7% 22.3% 20.7% 18.5% 11.0% 22.1%

UTOP

Margin

H1-2024 17.4% 21.0% 8.9% 23.2% 19.5% 19.1% 14.3% 22.1%

Powdered and liquid beverages was the largest category growth contributor, with 6.4% organic growth. This was pricing led, as we took actions to address input cost inflation in coffee. RIG remained positive.

Confectionery organic growth of 8.5% was pricing driven and led by KitKat and continued momentum in chocobakery. RIG was negative, reflecting some short-term elasticity response to the price increases.

PetCare delivered 1.3% organic growth, reflecting a general slowdown in category growth. Growth was led by our billionaire brands, including Purina Pro Plan, Felix, Purina ONE and Tidy Cats. Our super-premium science brands continue to show strong momentum.

Water organic growth was 3.7%, led by strong growth for the Maison Perrier range.

Milk products and Ice cream posted 1.1% growth, led by dairy culinary brands Nestlé and La Lechera, with coffee creamers turning positive in Q2.

Nutrition and Health Science recorded flat growth. Within this, Nestlé Health Science delivered low single-digit growth. Infant Nutrition posted negative growth, as strong growth for NAN was more than offset by a sales decline in Gerber.

Prepared dishes and cooking aids posted slightly negative growth. This was driven by frozen food in North America, where growth improved but remains negative, partially offset by growth in ambient culinary products, especially Maggi.

Annex

Second quarter performance tables

Nestlé

Nestlé Waters &

Total Zone Zone Zone Health Premium Other

Group Americas AOA Europe Science Nespresso Beverages businesses

Sales

Q2-2025

(CHF m) 21,627 8,315 4,903 4,114 1,632 1,577 1,012 74

Sales

Q2-2024

(CHF m) 22,953 9,182 5,247 4,094 1,728 1,593 1,031 78

Real

internal

growth

(RIG) - 0.4% - 1.2% - 1.2% 0.2% 1.9% 1.4% 2.9% - 2.1%

Pricing 3.3% 3.5% 2.9% 4.5% 0.8% 4.4% 2.7% 2.5%

Organic

growth 3.0% 2.3% 1.7% 4.7% 2.7% 5.8% 5.6% 0.3%

Milk Prepared

Powdered products Nutrition dishes &

Total & liquid & ice & Health cooking

Group beverages Water cream Science aids Confec-tionery PetCare

Sales

Q2-2025

(CHF m) 21,627 6,184 889 2,288 3,580 2,391 1,770 4,525

Sales

Q2-2024

(CHF m) 22,953 6,194 920 2,584 3,957 2,634 1,802 4,862

Real

internal

growth

(RIG) - 0.4% 0.7% 1.3% - 0.3% - 1.6% - 2.5% - 3.2% 1.1%

Pricing 3.3% 6.8% 3.0% 1.7% 1.3% 0.8% 11.3% - 0.1%

Organic

growth 3.0% 7.5% 4.3% 1.4% - 0.4% - 1.7% 8.1% 1.0%

(END) Dow Jones Newswires

July 24, 2025 01:00 ET (05:00 GMT)