Nestlé delivered solid organic growth in fiscal year 2025 despite a challenging economic environment, while continuing to advance its strategic transformation. Reported sales totaled CHF 89.5 billion, representing a nominal decline of around two percent. In contrast, organic growth reached 3.5 percent, driven by targeted price adjustments and positive real internal growth. Nestlé’s operating profit amounted to CHF 12.7 billion, down 13.4 percent year over year. Net income declined 17 percent to CHF nine billion.
Nestlé achieves organic growth despite a challenging consumer environment
Price adjustments contributed 2.8 percentage points to growth, particularly in coffee and confectionery, to offset higher input costs for coffee and cocoa. Real internal growth came in at 0.8 percent. Momentum accelerated significantly over the course of the year: while real internal growth was 0.2 percent in the first half, it increased to 1.4 percent in the second half.
Foreign exchange movements had a negative impact of 5.7 percent, as the Swiss franc strengthened significantly. Nevertheless, Nestlé improved its market share performance. The value gap versus the market narrowed by 60 percent, and volume performance remained stable. The company’s largest core brands achieved their strongest market share gains in more than a decade.
Nestlé CEO: Acceleration of strategy execution
Philipp Navratil, CEO of Nestlé, views fiscal year 2025 positively despite demanding conditions: “I am encouraged by our performance during 2025, which reflects the targeted actions we have taken in a difficult external environment.” He particularly highlighted real internal growth: “Real internal growth (RIG) was positive across all Zones and global businesses.” Regarding the company’s strategic repositioning, Navratil emphasized: “We are accelerating our strategy. We are focusing our portfolio on four businesses, led by our strongest brands, with prioritized resources and a simplified organization.”
Growth drivers: coffee, confectionery, and pet care
Coffee and confectionery made the largest contribution to organic growth. In both segments, Nestlé implemented a differentiated pricing strategy to offset cost increases while safeguarding mid-term market penetration. In coffee, demand elasticity remained limited and volumes developed slightly positively. In confectionery, stronger short-term elasticity effects were observed, in line with historical trends. Beyond these core categories, Nestlé recorded growth in most other segments. The pet care business performed particularly well, primarily driven by real internal growth.
Regional performance across Nestlé zones
In developed markets, Nestlé achieved organic growth of 2.3 percent, consisting of 1.1 percent real internal growth and 1.2 percent price adjustments. In emerging markets, organic growth reached 5.4 percent, largely driven by pricing.
The Americas zone delivered organic growth of 2.8 percent. In North America, growth was mainly volume-driven and supported by an improved market position. In Latin America, price adjustments in coffee and confectionery, along with continued momentum in out-of-home channels, supported performance. Due to currency effects, reported sales declined from CHF 36.14 billion to CHF 34.48 billion.
In the Asia, Oceania and Africa zone, organic growth amounted to 3.2 percent. Central and West Africa, South Asia, and the Philippines showed particularly strong momentum. In Greater China, a deflationary market environment and structural adjustments weighed on performance. Reported sales decreased from approximately CHF 21.18 billion to CHF 20.55 billion.
Europe posted organic growth of 4.3 percent, with real internal growth of 0.4 percent. Coffee, confectionery, and pet care were the key growth drivers. Despite an intense competitive environment, market shares improved in most categories. Reported sales increased from CHF 17.08 billion to CHF 17.58 billion.
Outlook for 2026
For 2026, Nestlé expects further improvements in sales and profitability. Despite geopolitical risks, potential trade restrictions, and currency volatility, the company believes it is well positioned to achieve sustainable performance gains through a focused strategy.
