The food company Nestlé reported sales of CHF 22.6 billion for the period from January to the end of March 2025. This represents an increase of over two percent on the previous year, when CHF 22.1 billion was recorded. According to the company, exchange rate effects reduced sales by half a percent. Internal real growth was 0.7 percent. This reflects weak consumer demand and the short-term impact of consumers adjusting to price increases. Confectionery and coffee made the largest contribution to organic growth. In terms of regions, organic growth was supported by all regions. In industrialized countries, organic growth was 1.6 percent. Driven by price adjustments, emerging markets improved organically by 4.5 percent.
Nestlé improves market share in numerous business areas
Laurent Freixe, CEO of Nestlé, commented on the first quarter 2025 results as follows: "In an environment of heightened macroeconomic and consumer uncertainty, Nestlé delivered organic sales growth of 2.8 percent, with RIG of 0.7 percent and pricing of 2.1 percent. Growth was broad-based across markets and categories, with improving market share trends across many businesses, particularly our billionaire brands. We have made further progress in delivering our strategy. Our ‘Fuel for Growth’ cost savings program is on track, providing the resources to help accelerate performance.
We have made further progress in delivering our strategy. Our ‘Fuel for Growth’ cost savings program is on track, providing the resources to help accelerate performance. We are continuing to make changes throughout the organization to increase alignment and focus, with steps to harmonize our structure in Zone Europe and enhance our capabilities in R&D. Performance in the first quarter was in line with our expectations, and our 2025 guidance remains unchanged."
Sales development by region: Americas remains stable
Reported sales growth in North and South America remained unchanged from the previous year at CHF 8.6 billion. Organic growth in North America was largely unchanged. Nestlé returned to positive internal real growth, with market share gains in several categories and a reduction in market share losses in frozen products and coffee whiteners. In Latin America, growth was driven by price adjustments, supported by coffee and confectionery.
Confectionery sales also grow strongest in Asia, Oceania and Africa
In Asia, Oceania and Africa, growth was broadly supported at 3.6 percent to CHF 5.5 billion. It was led by price adjustments. By category, growth was strongest in confectionery. Growth was also significant in the strategic focus areas of culinary products and pet products in emerging markets. Most regions achieved positive organic growth, with the strongest contributions coming from Central and West Africa, the Philippines and India. In China, growth in this quarter was positively influenced by the staggering of sales with an increase in distributor inventories in some categories in a difficult, deflationary environment with stagnant consumer demand. Summary of segment results.
Nestlé increases sales in Europe to CHF 4.4 billion
Growth in Europe increased by 2.5 percent to CHF 4.4 billion in sales. It was broadly supported across all markets and categories. Price-driven growth was achieved in particular in confectionery and coffee.
Full-year outlook confirmed
Nestlé confirms its outlook for the current 2025 fiscal year and expects improved organic sales growth as well as an increase in underlying operating profit margin of 16 percent.
Nestlé appoints Jeff Hamilton as CEO North and South America
Effective July 1, 2025, Jeff Hamilton, currently Head of Purina Petcare Europe, will take over as CEO of the North and South America Zone. Steve Presley, who currently holds this position, will retire after a career of nearly 30 years with Nestlé. He will step down from the Group Executive Board and as Head of the AMS Zone on April 30, 2025. CEO Laurent Freixe said: "We are very grateful to Steve for his many years of dedicated service to our company and extend our best wishes to him for his future endeavors. We are excited to announce that Jeff will become the new CEO of Zone Americas. Jeff has consistently demonstrated exceptional performance and a remarkable ability to inspire and motivate his teams. We look forward to working with Jeff to drive our growth strategy in Zone AMS."
