Nestlé has reported a significant turnaround in its market performance for 2025, driven by a resurgence in its “billionaire brands” and a strong recovery in the second half of the year.
This is despite the 2% decline in the company’s total sales, which saw a significant drop to CHF 89.49 billion (AUD 163 billion) from CHF 91.35 billion (AUD 166.4 billion) in the previous year.
Despite the dip in total revenue, the world-leading food manufacturer achieved 3.5% organic sales growth. This was fueled by a combination of 2.8% pricing adjustments and 0.8% real internal growth (RIG).
The company credits a strategy of “targeted investments” for this momentum.
According to Nestlé, these investments spurred a dramatic improvement in RIG, which climbed from 0.2% in the first half of the year to a 1.4% in the second half, showing consistent gains across all product categories and regions.
The financial report also showed notable improvement in market share trends, with the group’s volume share now stable.
The company noted that its “billionaire brands” are seeing their first positive share growth in over a decade.
The company also reported that its cash position remains strong, with free cash flow reaching CHF 9.2 billion (AUD 16.8 billion)
“I am encouraged by our performance during 2025, which reflects the targeted actions we have taken in a difficult external environment,” said Nestlé CEO Pilipp Navratil. “Real internal growth was positive across all Zones and global businesses. We increased our investment in marketing, delivered a UTOP margin of 16.1% and generated CHF 9.2 billion in free cash flow. Improving organic growth, RIG and market share trends in the second half show that our actions are working.”
Navratil said the company is accelerating its strategy by focusing its portfolio on four core businesses led by its strongest brands.
“We are upgrading our marketing and innovation and increasing investment behind high-potential growth platforms, which now have an expanded scope and represent 30% of sales. We are stepping up our efficiencies and strengthening our financial position. This is underpinned by a performance culture that rewards excellence and results,” the company’s CEO added. “While there is more to be done, we are confident that our faster execution of a more focused strategy will deliver sustained improvement through 2026 and beyond.”
The company’s net debt to Adjusted EBITDA ratio stands at 2.85x, and Nestlé has proposed increasing its dividend per share to CHF 3.10 (AUD 5.65).
