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MILAN – Nestlé ‘s sales declined in the first half of 2025. According to results released this morning, the Swiss food giant reported sales of CHF44.2 billion ($55.75 billion), 1.8% down from CHF45.04 billion a year ago (and CHF44.6 billion Swiss francs expected by analysts). This was affected by a negative exchange rate effect of 4.7%, due to the strengthening of the Swiss currency.
In contrast, organic growth, which excludes the impact of currency changes and acquisitions, increased to 2.9% (up from 2.1% a year ago) — just above the average analyst estimate of 2.8%. By category, confectionery and coffee were the largest organic growth contributors, driven by pricing of 10.6% and 6.0%, respectively.
Real internal growth (Rig) fell to 0.2% from 0.7% in the first quarter. Growth was negative in the second quarter, standing at 0.4%. Weak demand in the United States had a negative impact. In North America, Nestlé’s most important market accounting for 35% of sales, customs duties and uncertainties weighed on consumption.
Underlying trading operating profit was CHF 7.3 billion, a decrease of 7.1%. Underlying trading operating profit margin fell from 17.4% to 16.5%.
Net profit also declined, falling 10.3 percent to CHF 5.07 billion.
The Swiss company maintained the 2025 guidance maintained, despite factoring in increased headwinds. Organic sales growth is expected to improve compared to 2024. Underlying trading operating profit (UTOP) margin is expected to be at or above 16.0%, including negative impact from tariffs currently in place and current foreign exchange rates.
Despite heightened risks from continuing macroeconomic and consumer uncertainties, the company remains committed to investing for the medium term.
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.”
Zone Americas delivered resilient performance despite a challenging macroeconomic environment and fragile consumer confidence. In Latin America, growth was pricing-led, with double-digit increases in coffee and confectionery partially offset by negative RIG. Market share gains were achieved in portioned and soluble coffee in North America and ready-to-drink beverages in Latin America. Beverages (including coffee and coffee creamers) delivered high single-digit broad-based growth, with strong pricing and positive RIG. Nescafé was the key driver, reflecting its strong value proposition especially for more stretched consumers, as well as good commercial execution.
In Zone Asia, Oceania and Africa, coffee posted low single-digit growth, led by pricing. The largest growth contributor was Nescafé. Nestlé Professional achieved mid single-digit growth, across geographies and categories led by coffee products and beverage solutions as well as confectionery.
In Zone Europe, growth continued to be pricing-led, reflecting the inflationary environment for coffee and confectionery. Market share gains were achieved in PetCare and soluble coffee, with losses in confectionery and food. Coffee posted mid single-digit growth. RIG declined mid single-digit in Q1, but recovered to flat in Q2, even as pricing accelerated to double-digits. Organic growth was led by soluble coffee, supported by very strong growth in RTD coffee.
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 3.172 billion ($3.99 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.
