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Three-month sales 2025: Delivering broad-based growth, executing on strategy
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Saturday, 26 April, 2025, 08 : 00 AM [IST]
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Vevey, Switzerland
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Delivering broad-based organic growth in an uncertain environment - Organic sales growth of 2.8%, with real internal growth (RIG) of 0.7% and pricing of 2.1%. Pricing actions taken to address input cost inflation in coffee and cocoa, with limited customer disruption. Actions targeted with aim to recover input cost increases while maintaining medium-term consumer penetration. RIG reflected short-term impacts of consumers and customers adjusting to price increases.
Laurent Freixe, Nestlé CEO, said, "In an environment of heightened macroeconomic and consumer uncertainty, Nestlé delivered organic sales growth of 2.8%, with RIG of 0.7% and pricing of 2.1%. Growth was broad-based across markets and categories, with improving market share trends across many businesses, particularly our billionaire brands.
Good progress on strategy to accelerate category growth and improve market share - Investing to strengthen the core, with positive market share momentum for billionaire brands. Roll-out of innovation ‘big bets’ on track; encouraging consumer response to Nescafé Espresso Concentrate and gourmet pyramid-shaped cat food; recent launches of chocobakery across Latin America and AOA. Continued active management of 18 key underperforming business cells, with early indications of improvement.
Operational management driving broad growth across categories - Strongest organic growth delivered in confectionery (8.9%) and coffee (5.1%), led by pricing, with double-digit increases in some markets. PetCare organic growth (1.6%) was RIG-led and reflects some market softness, especially in the US, but with continued market share gains in most markets. Nestlé Health Science organic growth slowed to 4.2%, reflecting mixed performance.
Further simplification of organisation to support effective execution - Advancing organisational change after moving rapidly in 2024 to create alignment and focus. Continuing to eliminate duplication and accelerate innovation, including steps to harmonise the organisation in Zone Europe and enhance our capabilities in R&D.
‘Fuel for Growth’ cost savings program progressing to plan - On track to deliver CHF 0.7 billion incremental cost savings in 2025, to date primarily driven by realisation of procurement savings.
“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. In the quarter, we invested to strengthen our core business, achieved good consumer traction in the roll-out of our ‘big bet’ innovations such as Nescafé Espresso Concentrate, and saw some encouraging early improvements in our largest underperforming business cells. We are continuing to make changes throughout the organisation to increase alignment and focus, with steps to harmonise our structure in Zone Europe and enhance our capabilities in R&D,” said Freixe.
“Performance in the first quarter was in line with our expectations, and our 2025 guidance remains unchanged. This is based on our assessment of the direct impact of current tariffs and our ability to adapt. The indirect impacts – on consumers and customers, as well as currencies and commodity prices – remain unclear at this stage. Overall, the situation continues to be dynamic, with heightened risks and uncertainty. Our 277,000 committed colleagues are focused on successfully executing our strategy: driving efficiencies and investing for growth to accelerate our categories and improve market share," added Freixe.
2025 guidance remains unchanged, based on our assessment of the direct impact of current tariffs and our ability to adapt. 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. Overall, the situation continues to be dynamic, with heightened risks and uncertainty.
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