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

[Ad hoc announcement pursuant to Art. 53 LR]

This press release is also available in Français (pdf) https://www.globenewswire.com/Tracker?data=VAHcWGIUtWp5kYbA3_zNqfMA2NBdWePfAFJUkmH58MomM5jt240-I_eHiVAPDVMoHqrh1TkdheEZeqM6wSFOyMWD_khHRWDTavtSwyZe6Wo_DKwRvA--K6dspvloBC-9lRnPsLqChUkgBXdJmTszxYpMo8K7V3TkL9fTg2e4zkT580TN-nbokQ8uhfPP_euI and Deutsch (pdf) https://www.globenewswire.com/Tracker?data=46oZc3bKo1DAhbDjj2nNYTtoGrP65TVwLxBDe806dGdb9N9uQgJ19Q3ZOIJ-XMHnFcBRK-Fl59IU-FMHbRA3HHt9P-jAIBoaihPazwl_xZ2dxSkZcCWVtFcKXc7NBJLFctKB7PZzQ4vvCsBPGRr61x69AtxFsHDqbtWEUoAPgdyRqCrInmrGSY63rE-qkOqv

Follow today's event live

09:30 CEST Analyst and investor call - video webcast https://www.globenewswire.com/Tracker?data=sV4rOQc_uHOwwT3IseHIb4fGNOcduZExMggpc2lH1jTxN_NRV4wG1CvMOd3PnfcnbNSysR2VEZdjWUKl8K95Y5NPW_IVPWlUqb0BISNC_ZyoGKcjmcFopDu8G_uDFVY4UhpWNTwUil2w3vki_2r0rtek7Ez21QQtDZuoX4iPybA6YxTiX2vF8peefSa_ZidG

Full details on our website https://www.globenewswire.com/Tracker?data=fAjftizShyGV1lR9KUExG-IGghbppns21bmKWpK73W_hQKvjOPFfzWNI7jS1E2cjAXs3g0zuaLJnLMbHhWa5EilKx5llRkct-C4CXO1stycLA6pf8BPklXwI6OLbi3JaHa6pFHL2ScI22OdZu95R_NOsO02_mJltmi6Lq10-Wqw=

.............

Vevey, October 16, 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

Nestlé

Nestlé Waters &

Total Zone Zone Zone Health Premium Other

Group Americas AOA Europe Science Nespresso Beverages 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

(RIG) 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.

-- Greater China continues to be a drag, impacting Q3 Group OG by 80 bps and

RIG by 40 bps; new management is now in place and executing our plan to

transform this business.

-- 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.

Follow today's event live

09:30 CEST Investor & analyst call - video webcast https://www.globenewswire.com/Tracker?data=wlTjjTl1Msya4oeomg1zeiabO1ycD0lacIPukymY7vmxsqy1wDV5FFEhIxbVszKZHV4e1HJcpLrzsBt9bRyn1zBe4lzlSuoOaasVW06CyOU8jxjVU0aEfCNjZ3ElBolKvv243UdRYWoTBQP7UG14-7RuE4rRd0b335HNyR-xKyLk3_sV3rEGXY-k0Rr2b05Q

Full details in Events https://www.globenewswire.com/Tracker?data=ICFm9Pq8xkw6kP9SW6iHI_4xS-8M1kG20sfsl4OQ37zMFIxmBEjW1yFhf7e_kiK1jjXLg0Py7i2NyL1liEwg-wvIGx_hF2jUF-jiW9jvqnmgzfQcQ_EZR29FNs9-mFpw_hesHUwAsF0Xj8OCPqcoud3rpPg3rKf7y72u7j7hpSM=

PDF press releases:

-- English (pdf, 300Kb):

https://www.nestle.com/sites/default/files/2025-10/nine-month-sales-press-release-2025-en.pdf

-- Français (pdf, 300Kb):

https://www.nestle.com/sites/default/files/2025-10/nine-month-sales-press-release-2025-fr.pdf

-- Deutsch (pdf, 300Kb):

https://www.nestle.com/sites/default/files/2025-10/nine-month-sales-press-release-2025-de.pdf

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com https://www.globenewswire.com/Tracker?data=NoOTosmNI724JRXEjJIdarE14zdthYtlzMG0Mo08ZBpl70nWDrEH4hGJ1EnDbcVKnVGHKOQGjsbKx3F-tt-2IOGYd3L3DIDpwCWdDpULTJHATCkJeV_YOjIOeLkKwl7Y

Investors:

David Hancock Tel.: +41 21 924 3509

ir@nestle.com https://www.globenewswire.com/Tracker?data=FI97FbbuHa8uSZO7ST6UVafe21jEwHR9CrtBpPyUwYGqZhJWZx4PZbLbqVLNMrFut9bYQUiJDUz3WrjmLzzWgA==

Sales review

1. Group

In the first nine months, total reported sales were CHF 65.9 billion, a decrease of 1.9%. OG was 3.3%, with positive growth across all Zones and globally managed businesses. RIG strengthened to 0.6%, while pricing was steady at 2.8%. Foreign exchange movements had a negative impact of 5.4% and net acquisitions a positive 0.1% impact.

In the third quarter, OG was 4.3%, strengthening from 2.9% in the first half. RIG recovered strongly in Q3 to 1.5%, with improvements across all major product categories, benefiting from our growth investments. Pricing was 2.8%, which reflects increases taken in confectionery and coffee, along with some targeted actions in Q3 to optimize pricing and maintain medium-term consumer penetration.

By category, coffee and confectionery were the largest organic growth contributors. This growth was pricing-led, with double-digit increases in some markets. Elasticity was more pronounced in confectionery, consistent with historical trends, with coffee more resilient as RIG remains positive through the nine month period. Outside of coffee and confectionery, organic growth was positive across most categories.

By geography, all regions contributed to positive organic growth. In developed markets, organic growth was 2.1%, with an even balance between RIG and pricing. In emerging markets, organic growth was 5.2%, driven by pricing with RIG flat.

(MORE TO FOLLOW) Dow Jones Newswires

October 16, 2025 01:00 ET (05:00 GMT)