**Summary of Nestlés Full-Year Results 2025 and Strategic Update**
Nestlé reported its full-year 2025 results, highlighting strong momentum and strategic progress despite a challenging external environment. Key takeaways include
### **Financial Performance**
**Organic Growth (OG)** 3.5%, driven by pricing (2.8%) and real internal growth (RIG) of 0.8%.
**Sales** CHF 89.5 billion, down 2.0% due to foreign exchange movements (-5.7%).
**Underlying Trading Operating Profit (UTOP):** CHF 14.4 billion, with a margin of 16.1%, in line with guidance.
**Net Profit:** CHF 9.0 billionwith basic EPS of CHF 3.51.
**Free Cash Flow** CHF 9.2 billion, with a proposed dividend increase to CHF 3.10 per share.
### **Strategic Focus**
1. **Portfolio Sharpening**
Focus on four core businessesCoffee, Petcare, Nutrition, and Food & Snacks, accounting for 70% of sales.
Integration of Nutrition and Nestlé Health Science into a single business for synergies and simplification.
Advanced negotiations to sell the remaining ice cream business to Froneri.
2. **RIG-Led Growth**
Expanded growth platforms to 30% of sales, targeting high single-digit growth with CHF 0.6 billion additional investment in 2026.
Upgraded marketing and innovation capabilities, focusing on consumer insights.
3. **Business Transformation**
Simplified organizational structure with enhanced local accountability.
Achieved 20% of targeted CHF 1 billion annual savings in white-collar operational efficiencies, ahead of schedule.
4. **Cash and Capital Allocation**
Focus on reducing working capital and optimizing capex.
Regular review of non-core assets to unlock value.
5. **Performance Culture**
Fostered a culture of accountability and excellence, with incentives tied to RIG and strategic priorities.
### **Segment Highlights**
**Zone Americas** OG of 2.8%, led by pricing in beverages and confectionery.
**Zone AOA (Asia, Oceania, Africa)** OG of 3.2%, with strong growth in coffee and confectionery, except in Greater China.
**Zone Europe:** OG of 4.3%driven by coffee and confectionery.
**Nestlé Health Science** OG of 3.2%, with RIG-led growth in medical nutrition and active nutrition.
**Nespresso** OG of 6.0%, led by North America’s double-digit growth.
**Nestlé Waters & Premium Beverages** OG of 5.3%, driven by premium brands like Perrier and Sanpellegrino.
### **Guidance for 2026**
**Organic Growth** Expected range of 3% to 4%, with RIG accelerating.
**UTOP Margin** Improvement versus 2025, strengthening in H2.
**Free Cash Flow** <mark style="background-color:yellow">Above</mark> CHF 9 billion.
### **Leadership Changes**
Anna Mohl, CEO of Nestlé Health Science, stepped down from the Executive Board as part of the Nutrition business integration.
Nestlé’s CEO, Philipp Navratil, emphasized confidence in the company’s strategy, stating that faster execution of a more focused approach will drive sustained improvement in 2026 and beyond.
| Metric | 2025 (CHF) | 2024 (CHF) | Reported Change |
|---|---|---|---|
| Sales | 89,490 | 91,354 | -2.0% |
| Underlying Trading Operating Profit (UTOP) | 14,389 | 15,704 | -8.4% |
| Net Profit | 9,033 | 10,884 | -17.0% |
| Free Cash Flow | 9,154 | 10,666 | -14.2% |
| Net Debt | 51,400 | 56,000 | -8.2% |
| Dividend per Share (proposed) | 3.10 | 3.05 | 1.6% |
| Metric | 2025 | 2024 | Change (bps) |
|---|---|---|---|
| Gross Profit Margin | 45.6% | 46.7% | -110 |
| UTOP Margin | 16.1% | 17.2% | -110 |
| Net Debt/Adjusted EBITDA | 2.85x | Not Provided | N/A |
| Return on Invested Capital (ROIC) | 12.7% | 14.1% | -140 |
Notes:
- Net Debt figures are as of December 31st for 2025 and 2024.
- 2025 figures include the estimated impact of the infant formula recall.
- Basis points (bps) changes are calculated for margin comparisons.