Press Release: Nestle: Half-year results 2025: Consistent execution, improving growth foundations

Nestlé

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[Ad hoc announcement pursuant to Art. 53 LR]

This press release is also available in Français (pdf) https://www.globenewswire.com/Tracker?data=s2RxU0QL6GrjL1svv5_Jd05LdbdLL4nmAp8hofAvHJxS-j1lPhOqxBOqROWfwb3LNVErlXeqipppuJY68qMO0xDNh3Um5slZWQD7hHYysAklGO26wyfqkBSiMjx93DOGU69Zif9QwcPrfEn97rsTKntSdgOkvvF7hh95DnxjI5OXvL9Lbrp7EUw77wFmx20A and Deutsch (pdf) https://www.globenewswire.com/Tracker?data=5uy_WispeZlAnjlBba7xmDVX34Y-_Mj8_HYT8Q61hA5uCdxLMt4OWJBzdNctWaU6HXEC70YCLHodUzV6Z5NgHtgFS6qUCv0olEhygAnCuJ0XeLirnIUPkXUKfE5B2_E1UTwK4tkMtAKVxMWfMd4WPZBz6VVo11InjtPEwOoI7Drq9NZFLOwFXsNVWZwwDvmR

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Reports published today

Half-Year Report (pdf) https://www.globenewswire.com/Tracker?data=mjfFVFZkEqXIFaXTjD11wRoVLz90tCWxuipPTCrRqd-dZxLjDphVkPNx9dD583YUGaFGaKYx5aPHdUyVqqXEqKj-VcshQ5dLVZGUnbFdxr4oLnxBz-wsG-oNWRMzMeouYS-2gf3OTmW-xaDU0uPUJzbdvMPdvC47H2NdTkz5Krvw7HI5vrACHEHjiPAqaHqJ

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Half-year results 2025: Consistent execution, improving growth foundations

Vevey, 24 July 2025

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 profit(1) 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.

Follow today's event live

09:00 CEST Investor & analyst call - video webcast https://www.globenewswire.com/Tracker?data=SRdOC_i7pNF-mm37MeQMr_KgwPfX2nKZZ7OHmZbO6I5SDBln49-sDYnjwlvgJS3cjLA0BRNVuQqlKJcWT6Xn_w2d_-UfqTfJE4iKJISgG4XY4EJ0czWYRWG2QdZ-4EY8FalVpAHuGbxoeiYk87mcHjVwGrTQO99D2Y2HE8QY1gpp7FXyasxmpr8YOwnZkaM4

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PDF press releases:

-- English (pdf, 338Kb):

https://www.nestle.com/sites/default/files/2025-07/half-year-results-press-release-2025-en.pdf

-- Français (pdf, 335Kb):

https://www.nestle.com/sites/default/files/2025-07/half-year-results-press-release-2025-fr.pdf

-- Deutsch (pdf, 420Kb):

https://www.nestle.com/sites/default/files/2025-07/half-year-results-press-release-2025-de.pdf

Reports published today:

-- 2025 Half-Year Report (pdf, 871Kb):

https://www.nestle.com/sites/default/files/2025-07/half-year-report-2025-en.pdf

-- Rapport semestriel 2025 (pdf, 896Kb):

https://www.nestle.com/sites/default/files/2025-07/half-year-report-2025-fr.pdf

-- Halbjahresbericht 2025 (pdf, 910Kb):

https://www.nestle.com/sites/default/files/2025-07/half-year-report-2025-de.pdf

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com https://www.globenewswire.com/Tracker?data=ZFFXT9RTu2JQqS3mGBXVzCjS46LXolpRfZ9OhG24mBar_oVvvYwzTsPNbeNmEBLBNBGhElgBKmEEauxqMsL4S60OrKPv1c-nFoe6akgUKK8Z6luw6aT827AKj0VMWpCI

Investors:

David Hancock Tel.: +41 21 924 3509

ir@nestle.com https://www.globenewswire.com/Tracker?data=DuoUXGX0J1-4MZpzeao4ay-rD3PSCRH3OGg-1ur5rTqSW1zQOGHfj-c6txv8wA-P2XtuAuBE95SDPi9KxDxdGQ==

Operational and strategic review

Growth and investment

In the first half of 2025, organic growth was 2.9%, with 2.8% in Q1 and 3.0% in Q2. Pricing contribution increased to 2.7% in H1, as we took actions to address input cost inflation in coffee and cocoa-related categories. RIG was 0.2%, reflecting lower consumer demand and the short-term impact of consumers and customers adjusting to price increases. Sales declined in Greater China, negatively impacting the Group's second-quarter OG and RIG by 70 bps and 40 bps, respectively.

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